Brazil’s harvest is delayed, China buys 4.5 million bushels of U.S. sorghum
Brazil’s harvest delays are proving to be beneficial for U.S. commodities.
This year, buyers are forced to rely on supplies in the United States, longer than usual. The demand has drawn down the stockpiles pushing prices higher. Brazil usually harvests in the first three months of the year, bringing an end to U.S. export dominance.
Recent U.S. exports have set records while January exports from Brazil are 28 times lower than last year.
China’s buying spree is now shifting to sorghum.
It purchased another 4.5 million bushels of the old crop last week. China has now purchased more than 230 million bushels of the 2020 U.S. sorghum crop, or 63 percent of the output.
Basis in the sorghum belt has been mostly flat due to very low stockpiles, but outlying areas are strong as buyers scope out any remaining available sorghum.