Tight Sorghum Supplies Create Stability

National Sorghum Producers was one of the agricultural groups that make up the annual commodity classic event. This year, the commodity classic was held in Denver, and national sorghum producers, CEO Tim Lust gave an update on sorghum economics and trade.

“When we look at overall, you know, we don't have a lot of excess supply. Things are relatively tight. Certainly, we have had a little lower exports this winter, but we've had a lot stronger ethanol demand domestically as well, so a little bit more than than maybe as normal for us right now, but still, when we look at it from a big picture standpoint, pretty stable in terms of supply and demand situation. Of course, prices are a challenge everywhere, for all commodities. So certainly, we've seen better times, some increase in price here in the last little bit. That's positive so, but as we get ready, you know we're already planning again in South Texas already. So we're going again and looking forward to 2025.”

In addition, Lust points out that normally about a third of sorghum is used in ethanol production, and when export numbers dip, ethanol use increases again. Tim Lust, CEO of National Sorghum Producers, I'm Lorrie Boyer, with the Line on Ag Report.