Ethanol and Sorghum Export Gains Broaden USDA Quarterly Trade Outlook

Ethanol, sorghum, dairy, and cotton provide additional export support as major commodity trade markets remain uneven.

WASHINGTON, D.C. (RFD NEWS) — The USDA’s quarterly Outlook for U.S. Agricultural Trade, for May 2026, shows several smaller categories adding export support beyond headline corn, soybean, and beef trends. Ethanol, sorghum, dairy, and cotton each offer important signals for producers as the fiscal year continues.

Ethanol export value is projected at $5.1 billion, up from $4.6 billion in fiscal year 2025. The increase reinforces biofuels as a value-added outlet for corn and rural processing capacity.

Sorghum export volume is forecast near 213 million bushels, more than double last year’s roughly 89 million bushels. That increase provides a stronger outlet for growers in the Plains and Southwest.

Dairy exports are projected to rise from $ 9.2 billion to $ 9.9 billion. Cotton export volume is forecast near 12.4 million bales, although its export value remains slightly below last year at $4.8 billion.

These gains do not erase the broader agricultural trade deficit, but they show how value-added products and secondary commodities continue supporting farm demand. USDA’s forecasts cover activity through September 30.

Farm-Level Takeaway: Ethanol, sorghum, dairy, and cotton provide additional export support as major commodity trade markets remain uneven.
Tony St. James, RFD News Markets Specialist

(Tags: Ethanol, Sorghum, Dairy, Cotton, Agricultural Exports, USDA, Biofuels, Value-Added Agriculture)

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Rising freight and diesel costs are making it harder to move hay between regions.
USDA says the FIELDS program will fund 22 projects across 16 states in an effort to boost fertilizer supply.
Sharply lower placements tighten future cattle supplies, while heifer numbers still show only limited evidence of meaningful herd rebuilding.
The special provision giving producers the higher of ARC or PLC for 2025 will not continue next year.
Higher heating costs are putting added pressure on household budgets in rural communities.
Final details on eligible endorsement combinations are expected by the end of November.
Stronger East Coast shipments are giving U.S. corn another route to overseas markets.
Higher restaurant spending could support foodservice demand for U.S. agricultural products.
Lower production is tightening domestic supplies and pushing rice prices higher.
Growing biofuel use is helping support domestic soybean crush demand.