U.S. sorghum exports to China rocketed to a record 4.2 million metric tons (165 million bushels) last marketing year, and they continue at a record pace with accumulated exports and outstanding sales of 6.6 million tons (260 million bushels) as of March 12, only halfway through the 2014/2015 marketing year.
Looking to build on that success, a U.S. Grains Council (USGC) team recently attended the sixth annual China DDGS and Sorghum Conference in Xiamen, China, where they engaged in a vigorous exchange with Chinese buyers and end-users about the prospects for continued growth.
“China accounts for more than 80 percent of our total grain sorghum exports to date in 2015,� said Alvaro Cordero, USGC manager of global trade. “The Council has worked hard, along with the United Sorghum Checkoff Program (USCP), to create this opportunity. This week, we’re here to meet with our customers and make sure we answer their questions so that we can keep the growth on track.�
The annual DDGS and Sorghum Conference is a key opportunity for Chinese buyers to assess U.S. production expectations and market trends. While U.S. sorghum has established a significant presence, the Chinese supply situation is still complicated by the presence of high domestic corn stocks, continuing uncertainty about the resumption of U.S. corn exports and persistent high prices in China for feed ingredients.
“Sorghum exports were the bright spot during a very complicated period in 2014, and China remains a complex environment in which to trade grain,� said Bryan Lohmar, USGC director of China. “We are working hard on DDGS and corn trade issues, but sorghum continues to be a big winner, particularly since there are no regulatory impediments at this time.�
The team will spend the remainder of the week completing site visits and side meetings with Chinese traders and end-users before traveling to Guangzhou to participate in next week’s JCI Spring Conference on Chinese Feed Raw Materials Market.
Click here to view more photos from the work in China this week.