Sorghum
The new MILO contract gives sorghum producers a direct tool to manage price-spread risk, but liquidity and regional basis differences remain important factors.
The latest USDA WASDE report could move grain markets with updated estimates for corn, soybean, and wheat production, ending stocks, and demand.
Wheat inspections climbed 24 percent for the week as corn remained above year-ago levels.
Strong new-crop soybean demand and rising corn shipments provided the clearest support in an otherwise mixed report.
Each contract covers 5,000 bushels and is priced as a differential to corn futures. That structure allows users to hedge changes in the sorghum-to-corn cash spread without taking full exposure to broader grain-market price movements.
The next U.S. Drought Monitor is scheduled for release Thursday, providing an updated look at moisture conditions across the country.
Weekly USDA export data showed beef leading the way as corn stayed strong and soybean sales weakened.
China was the top focus in the latest USDA export inspections report, taking about 9.9 million bushels of inspected U.S. soybeans for the week ending July 2.
USDA’s latest grain stocks report provides an updated look at corn, soybean and wheat supplies heading into the summer.
USDA says the move could lower phosphate fertilizer prices by about 22 percent and benefit more than 100,000 farms.