Crop prices have seen better days, and that includes U.S. sorghum. Industry leaders there say producers need to stay on top of the latest market information.
“Prices for all of the grain commodities have softened these last six or seven weeks, and sorghum hasn’t been immune to that. We have seen as the South Texas harvest was underway and wrapped up in late June and early July, we saw a real change in the basis there. The last boat that was loaded with sorghum for China, which would have been in probably late July, and the basis to finish filling that boat was a plus $2.10. That’s a phenomenal basis. As harvest moves further north, as we go through the Texas panhandle into Oklahoma and Kansas and Colorado, certainly, we anticipate seeing basis narrowly as a means of pulling that grain into merchandisers hands, where they’ve been, got the ability to either take it to export or take it to biofuels production here in the High Plains,” said
Greg Ruehle.
China is a major buyer of U.S. sorghum, and industry leaders say demand this year has been strong. Last year, the industry was plagued by transportation and logistic issues around the Panama Canal.
