LOS ANGELES, Feb. 07, 2022 (GLOBE NEWSWIRE) -- The average sorghum price from U.S. farmers rose by 55% y/y to $5.94 per bushel or $234 per tonne in 2021, a recent report from IndexBox reveals. Boosting demand for sorghum for feed and bioethanol-synthesis usage combined with limited supply led to the price increase. Sorghum production rose by 20% y/y to 11.4M tonnes in 2021 due to expanding harvested area by 27% to 6.49M acres.
In 2022, sorghum prices in the U.S. are forecast to gain 2% y/y, driven by the rising fertilizer costs and increasing feed grain demand from China, the leading importer of American sorghum. Actively expanding domestic animal herd, China faces the feed deficit. Supplies from the U.S. constitute approx. 89% of total China's sorghum imports.
U.S. Sorghum Exports
The volume of sorghum exported from the U.S. skyrocketed from 2.8M tonnes in 2019 to 6.6M tonnes in 2020. In value terms, sorghum supplies surged from $0.6B to $1.4B.
China (5.6M tonnes) was the main export destination for sorghum from the U.S., accounting for 85% of total supplies. Moreover, sorghum exports to China exceeded the volume sent to the second major destination, Mexico (275K tonnes), more than tenfold.
In 2020, the volume of sorghum supplied from the U.S. to China stood fivefold. Exports to Mexico sharply decreased over the same time.
In value terms, China ($1.2B) remains the key foreign market for sorghum exports from the U.S., comprising 83% of total exports. The second position in the ranking was occupied by Mexico ($72M), with a 5.2% share of total exports.
In 2020, the average sorghum export price amounted to $211 per tonne, increasing 7.4% against the previous year. Average prices varied somewhat for the major foreign markets. In 2020, the country with the highest price was Mexico ($263 per tonne), while the average price for exports to Japan ($206 per tonne) was amongst the lowest. In 2020, the most notable growth rate in terms of prices was recorded for supplies to Mexico, while the prices for the other major destinations experienced more modest paces of growth.
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Companies Mentioned in the Report
Archer Daniels Midland (ADM), Bunge, Cargill, Louis Dreyfus, Dupont Pioneer, Dow AgroSciences, Advatna, Allied Seed, Dyna-Gro Seed, Nuseed, Hancock Farm and Seed Company, Chromatin, Channel, Sustainable Seed Company, S&W Seed Co, Alta Seeds, White Sorghum Seeds, Bowser, Sorghum For Animal Feed Per Mt, Clowdis Brother LLC, Johnston Seed Company, Scott Seed, Ol USA Llc, Kaztrans Ltd. Partnership, Kauffman Seeds
Sources
U.S. - Sorghum - Market Analysis, Forecast, Size, Trends and Insights
Northern America - Sorghum - Market Analysis, Forecast, Size, Trends and Insights
World - Sorghum - Market Analysis, Forecast, Size, Trends and Insights
World - Grain - Market Analysis, Forecast, Size, Trends and Insights
China - Grain - Market Analysis, Forecast, Size, Trends and Insights
