Global Markets: Grains – U.S. Corn, Sorghum Sales to China Bode Well for Exports
Published Aug 14, 2020
Tridge summary
As of the last week in July, combined U.S. old-crop corn and sorghum commitments (accumulated exports plus outstanding sales) to China stand at 5.6 million tons for delivery in 2019/20, the highest level since 2013/14. Much sorghum has already been shipped, while most corn waits for shipment. These late-season sales bode well for China’s commitments to the United States following the Phase One agreement.
Original content
For the new-crop, corn sales to the world stand at 10.9 million tons, just shy of tripling the level a year ago and well ahead of the pace seen in recent history. For sorghum, the new crop sales stand at 1.2 million tons, the highest level in 5 years. Strong early season sales do not necessarily lead to greater total exports as numerous variables influence trade dynamics throughout the year. However, large early season sales do give a kickstart to exports in the coming year. Aside from the Phase One agreement and despite overhanging trade tensions, the pace of new crop sales to China ostensibly reflects China’s pressing needs for competitively priced feedstuffs to help meet growing feed demand and cool down domestic prices. For China’s feed mills, fewer options for corn substitutes are available after anti-dumping and countervailing duties (AD/CVD) have been imposed on Australian barley. Barring action by China, the AD/CVD on U.S. distillers’ dried grains remains in place for ...
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