Ethanol and Sorghum Export Gains Broaden USDA Quarterly Trade Outlook

Ethanol, sorghum, dairy, and cotton provide additional export support as major commodity trade markets remain uneven.

WASHINGTON, D.C. (RFD NEWS) — The USDA’s quarterly Outlook for U.S. Agricultural Trade, for May 2026, shows several smaller categories adding export support beyond headline corn, soybean, and beef trends. Ethanol, sorghum, dairy, and cotton each offer important signals for producers as the fiscal year continues.

Ethanol export value is projected at $5.1 billion, up from $4.6 billion in fiscal year 2025. The increase reinforces biofuels as a value-added outlet for corn and rural processing capacity.

Sorghum export volume is forecast near 213 million bushels, more than double last year’s roughly 89 million bushels. That increase provides a stronger outlet for growers in the Plains and Southwest.

Dairy exports are projected to rise from $ 9.2 billion to $ 9.9 billion. Cotton export volume is forecast near 12.4 million bales, although its export value remains slightly below last year at $4.8 billion.

These gains do not erase the broader agricultural trade deficit, but they show how value-added products and secondary commodities continue supporting farm demand. USDA’s forecasts cover activity through September 30.

Farm-Level Takeaway: Ethanol, sorghum, dairy, and cotton provide additional export support as major commodity trade markets remain uneven.
Tony St. James, RFD News Markets Specialist

(Tags: Ethanol, Sorghum, Dairy, Cotton, Agricultural Exports, USDA, Biofuels, Value-Added Agriculture)

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Early Cattle-on-Feed estimates point to slightly tighter cattle supplies, reinforcing the need to monitor prices and timing for winter marketing.
Removing the 40% duty sharply lowers U.S. beef import costs on beef, coffee, fertilizer and fruit, and restores Brazil’s competitiveness during a period of tight domestic supply.
Row crop losses in 2025 are outpacing last year. With no disaster aid yet approved, many operations face a tough financial bridge to 2026 even as Farm Bill improvements remain a year away.
Experts say farmers and ethanol producers would benefit from a risk-based ILUC system that protects forests without relying on speculative modeling.
Farmland values remain stable, but weakened credit conditions and lower expected farm income signal tighter financial margins heading into 2026.
Ethanol exports are expanding on strong demand from Canada and Europe, while DDGS shipments remain broad-based and supportive for feed markets.