Sorghum tends to be a cheaper feed alternative to corn, but Beijing’s action effectively shut the door to American producers. In fact, American sorghum destined for China is now in limbo.
“Our global staff is now focused on finding homes for the substantial amount of U.S. sorghum that is in transit to China now or has already been sold but not shipped, as well as new crop that will be harvested in the coming months,” the U.S. Grains Council said in a statement.
Mexico has traditionally been the second-largest buyer of U.S. sorghum after China. But Japan has come in to purchase some supplies and the EU is another option.
For China, the tariff situation has made Australian sorghum more attractive. Even so, Reuters reported Wednesday that prices for cargoes of Australian sorghum were up after the anti-dumping duties were slapped on the U.S. grain. Australian prices are getting support as a result of a smaller crop, too.
“The Chinese need to satisfy their animal feed uses,” Reilly said. “They imported it because it was a cheap product. So now they’re forced to go out and buy more expensive feed from other countries or crush more soybeans and rapeseeds to get to more meal.”