Sorghum export report released
Export sales were very strong again recently with China and Japan committing to purchase 7.4 million bushels. This brings total commitments to 188 million bushels or 72 percent of the USDA export target just over four months into the marketing year. Shipments were also strong with China, Japan and Mexico taking delivery of 2.8 million bushels. Total deliveries now stand at 75 million bushels. Basis continues to respond to this demand with central South Dakota terminal bids of -$0.20 for old crop sorghum and -$0.60 for new crop sorghum (compared to -$0.48 for old crop corn and -$0.70 for new crop corn); central Kansas terminal bids of +$0.15 for old crop sorghum (compared to -$0.45 for old crop corn); and Free On Board vessel Gulf bids of $5.16 per bushel or 126 percent of corn. FOB vessel bids are higher than at any time since August 2015, when the premium for sorghum was 31 percent.