A new trade pact between China and Brazil could have a big impact on the U.S. sorghum market.
Frequent Market Day Report analyst Brian Hoops says China is a big buyer, and growers have a lot to lose.
“They are a huge buyer of U.S. grain sorghum. In fact, about 95% of what we sell here in the U.S. goes to China. So if we take that market away, it could have an impact on our soaring prices here in the U.S., and also if we have a detrimental impact enough, we may switch out sorghum for some other competing feed grain. Maybe corn would get planted more instead of sorghum. So a lot of impact on what is going on with China and Brazil as well.”
The United States is currently China’s largest sorghum supplier, with exports last year surpassing $1 billion.
