USA prepares to make more sorghum export to China
12 September 20132 min reading
China has decided to increase the sorghum amount imported from USA. China’s sudden decision to increase its imports of US sorghum, is not a one-time-thing, says US Grains Council’s (USGC) manager of global trade, Alvaro Cordero.
According to the news reflected to the US press, China prepares to increase the sorghum amount imported from USA. Making an explanation about the subject US Grains Council’s (USGC) manager of global trade Alvaro Cordero thinks that the increase in the import demand is not a one-time thing. According to Cordero, today’s US sorghum price is trading at a $40 per ton price advantage over Australian origins. This provides a strong incentive for importers and end-users to purchase sorghum from the United States. China is currently expecting a delivery of 600,000 tons. However some traders expect that to be significantly higher in the upcoming crop year.
Historically, China imports the majority of its sorghum from Australia and Myanmar for alcohol use. However, the increasing demand for coarse grains has prompted China, for the first time, to expand its feed rations to include sorghum.
“This new demand from China is critical to maintaining a healthy U.S. sorghum industry. Equally important is that the Chinese buyers properly use sorghum in their milling and rations. These two factors will enable future exports and increase consumption of sorghum as a feed component in China,” Cordero said. In China, 2 % of the sorghum is used for food and 9 % is used for feed sector.
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