Sorghum tends to be a cheaper feed alternative to corn, although Beijing’s action effectively shut the door to American producers. In fact, American sorghum destined for China is actually currently in limbo.
“Our global staff is actually currently focused on finding homes for the substantial amount of U.S. sorghum of which is actually in transit to China currently or has already been sold although not shipped, as well as brand-new crop of which will be harvested from the coming months,” the U.S. Grains Council said in a statement.
Mexico has traditionally been the second-largest buyer of U.S. sorghum after China. although Japan has come in to purchase some supplies along with the EU is actually another option.
For China, the tariff situation has made Australian sorghum more attractive. Even so, Reuters reported Wednesday of which prices for cargoes of Australian sorghum were up after the anti-dumping duties were slapped on the U.S. grain. Australian prices are getting support as a result of a smaller crop, too.
“The Chinese need to satisfy their animal feed uses,” Reilly said. “They imported the idea because the idea was a cheap product. So currently they’re forced to go out along with buy more expensive feed coming from some other countries or crush more soybeans along with rapeseeds to get to more meal.”