WASDE Report Continues to Report Surpluses of Sorghum

The most recent U.S. Department of Agriculture (USDA) World Agricultural Supply and Demand Estimates (WASDE) report projected high yields for U.S. sorghum in the 2014/2015 marketing year. The United States is also expecting robust exports as demand remains strong in China, the largest export market for U.S. sorghum, and other areas.

Strong Yield Expected Despite Fewer Planted Acres

The September WASDE report shows a notable increase in total sorghum production compared to last year despite a slight reduction in planted acres. Production estimates for the 2014/2015 marketing year (Sept. 1 to Aug. 31) are at 10.9 million metric tons (430 million bushels), with last year’s total at 9.9 million tons (389 million bushels). Approximately 3 million hectares (7.5 million acres) were planted this year, down 242,916 hectares (600,000) acres from the 2013/2014 marketing year.

These predictions are a result of significantly higher yields per acre. WASDE predicted 4.2 tons per hectare (67.2 bushels per acre) for the 2014/2015 season, an increase from last year.

Plenty of Sorghum for Export

With favorable yields and little expected change in domestic use, the USDA expects nearly half of total U.S. sorghum production to be exported in 2014/2015, an estimated 5.1 million tons (200 million bushels). Sorghum prices, however, did not see a noteworthy drop, as demand stayed strong.

The United States exported 4.7 million tons (185 million bushels) of its sorghum to China in the 2013/2014 marketing year, which ended on Aug. 31. Japan and Mexico also remain reliable buyers of U.S. sorghum importing 322,000 tons (12.7 million bushels) and 114,000 tons (4.5 million bushels) respectively.