Sorghum hits its peak

By August, 1.5 million tonnes out of a possible 2.1 million tonne national crop will have been exported according to Pentag Nidera trading manager Matthew Patterson.

He said demand from China had created strong prices since March, peaking at $348 a tonne delivered to Newcastle last week.

A month prior, the price was $324/t.

Prices had eased during the past week, however Mr Patterson said this was due to the opening of the US sorghum season.

Supply has been largely unavailable from the Central West and Riverina.

Mr Patterson said the market had been very strong, but would continue to decline as China looked to the US for its requirements.

"Demand for Australian sorghum has been increasing year on year but demand always drops this time of year because the US product is far cheaper than ours."

He said the market's ability to meet demand was much better this year compared to last, owing to good planting conditions.

"Having a good start to the season meant we didn't have an undersupply, but we didn't have an oversupply either."

Quirindi Grain and Produce trader John Webster said he was surprised the price was so firm.

"I can't believe it's making so much money - more than wheat even," Mr Webster said.

"Those who stuck with Sorghum this year really have struck gold."

Domestic grain buyers had largely been priced out of the market, he said.

"It's an exporters market that's for sure," he said.

While the poultry industry had been buying in, feedlotters had been relying on wheat, barley and corn instead.

"Feedlots around here are chock-a-block of cattle and they'll have to source some grain because we've got a long time until harvest," he said.

"They'll step back into the market when the Chinese are done in the next few weeks."

In previous years Japan had been the main importer of Australian sorghum, but now "paled into significance" compared to China, according to Market Ag director Mark Martin.

As a result, the Chinese - who use our sorghum to produce alcohol - held significant sway over the market.

He said last year's exports to China were much smaller due to their claims there was excessive levels of mottling in the grain.

Many deliveries were rejected on these claims and on the whole prices were reduced.

As a result many farmers were hesitant to lock in forward contracts this year which caused a price surge at harvest time.

"A lot of buyers weren't able to get their hands on any sorghum until harvest, so that helped push the price up as well."

Mr Martin said while this year's market is firm, some worrying developments could stifle next year's market.

"There is some talk China may look to review their import protocols on sorghum which could reduce our exports next year," he said.

Sold in a flash at Willow Tree

NEIL Barwick, "Yarrabah", Willow Tree, sold his sorghum in a flash thanks to firm Chinese demand.

While harvest was disrupted with patchy showers, the last of his 750-hectare crop came off in May and had all been delivered to port (at Newcastle) in a month.

"Anybody with any sort of common sense or marketing ability sold their grain very quickly this year," Mr Barwick said.

"The whole lot was exported to china."

Mr Barwick described the growing season as "ordinary" and was delighted with the final outcome.

"The top prices well and truly compensated for the lack of yield we got after an average season," he said.

"We had a lot of stored sub-soil moisture in the fallow period and that's what got the crop thorough."

He used his new industrial drier to ensure the grain was dry enough for export.

Mr Barwick is pictured during harvest inspecting his Buster variety sorghum.

He's been growing the variety since it was first released.