WHILE sorghum won't hit the heights of last year's $350 a tonne at Newcastle, the depressed outlook for cotton will likely tempt growers to lift sorghum plantings this season.
AgLink trader Justen Schofield, Dubbo, said current crop prices exceeded that of new crop.
"The sorghum market is at an inverse through to new crop," Mr Schofield said.
"The Liverpool Plains is trading about $245 to $255 a tonne currently (for old crop), and the April 15 new crop bid indicative is $225/t," Mr Schofield said.
In February, sorghum delivered Newcastle traded for as high as $350/t.
"Prices have tempered since the peak in late March this year, but we are still in a very strong domestic premium market," he said.
Lack of water for irrigation and depressed cotton prices could drive growers towards alternate cash crops, including sorghum.
"Cotton is a bad story, with little to no irrigation allocation for the 2015 season in many valleys.
"Lack of planting moisture is a concern across most summer cropping areas, and the bid for 2015 cotton is $415/t.
"At those levels, dryland growers would have to seriously consider switching into sorghum production."
Local Land Services (LLS) forecast sorghum planting to rise 15 per cent on last year, while ABARES forecast a 43 per cent jump on the nation's previous planting to 200,000 hectares.
Assuming adequate and timely rainfall is received during spring and summer, grain sorghum production is forecast to reach about 660,000t in 2014-15 according to the ABARES September Crop Report.
LLS North West senior cropping office Brooke Sauer said despite dry conditions, sorghum plantings should be expected to increase on last year across her district.
"There has not been enough rain to plant cotton confidently," she said.
"Dryland growers would be looking for significant falls in the next week or two to consider planting cotton.
"Last year's sorghum crop was down about 15pc on the baseline of 30,000ha for the Moree district last season.
"But I would expect that this season, plantings would increase to reach that figure."
Robinson Grain trader Anthony Furse, Toowoomba, Queensland, said sorghum prices hadn't dropped far enough to make feedlots a major factor.
"Indications at the moment are that lotfeeders are looking more at white grains: wheat and barley," Mr Furse said.
"Sorghum's pricing for new crop is such that at the moment, it's not very attractive for them.
"But compared with wheat, at current prices, poultry producers could use it in their feed rations."
China is expected to have strong demand for sorghum again this year, on the back of its whopping 400,000t of imports from last season's crop.
Mr Schofield said China's demand was driven by both feed markets and production of a distilled liquor, Baijiu.
"There is still demand there, despite the very high domestic premium currently priced into our market."