US Sorghum Prices Strong
“Obviously, prices from a historical level are still pretty strong. As we mentioned, cost of production though has certainly gone up. So you know, have to have to weigh those against each other from a demand standpoint. You know, we had such a small crop last year that at every ounce of our crop, last year's crop is going to be sold in the bands are going to be swept out and you know, really just starting to see some new crop sales for export as we know, we have bushels in South Texas that are going to be available for export. So we've been able to see some new crop sales come on from the export market there and feel like that South Texas crop will move quickly into the export market really, you know, have to wait a little bit to where we know you know, a little better idea of what bushels we have available in the main sorghum growing belts.”
Solid demand remains, however, Lust says supply is an issue.
“I would say whether it is domestic ethanol or exports, we still have solid demand and you know the only thing that may not make that show up as much as normally as we just had such a low crop last year and so little supply that it's hard to sell what you don't have.”
For reference, China is the top US sorghum importer.