SORGHUM prices remain at historic highs as grain traders compete for a limited supply of grain in a depleted feed market.
Around Moree, sorghum is fetching about $225 a tonne on farm, while prices on the Liverpool Plains have reached $235/t on farm.
Sorghum has traded at above $270/t delivered to Newcastle.
Pinnacle Commodities director Richard Officer, Moree, said while prices had come back marginally in recent weeks, demand for sorghum remained strong, driven by low expected yields both domestically and internationally.
“Prices are back slightly from those historic highs but they’re still only about $5 back from where they peaked,” he said.
“Ordinarily we’d be looking at $200/t at best.”
Mr Officer said depleted feed stocks in the United States were pushing up prices in Australia.
Unseasonably cold conditions across the northern hemisphere corn planting zones have reduced the area sown to feed crops.
“That planting window in the US is open now and is rapidly closing and it’s just been too cold there to get many corn acres in,” he said.
“Country that usually goes to sorghum may now go to soybeans instead.”
Spring wheat plantings in the US are also back due to the cool temperatures.
Domestically, quality issues with Queensland crops are also contributing to the bullish outlook for sorghum.
Rabobank senior analyst for grains and oilseeds Graydon Chong said rain at harvest had downgraded sorghum grown around Queens-
land’s Darling Downs region.
“There’s been a fairly big impact there on both quality and quantity,” he said.
The wet conditions on the Downs have caused issues with sprouting while further north into Central Queensland quality remains good.
A lower than usual State yield in NSW due to dry conditions at sowing will also drive up the market.
Philp Brodie Grain regional trading manager Andrew Jurgs said growers seeking to take advantage of the high prices were holding off forward selling their crop, leading to strong competition for what little grain is available.
“With production lower, there is some pressure due to a lack of grower engagement with the market,” he said.
“Traders have had to increase prices to get growers to commit tonnages.”
Mr Jurgs said demand for Australian sorghum in China was high for both alcohol production and feed demand.
While the price outlook for growers with crop in bins looks strong, some NSW croppers, particularly around the Liverpool Plains, with late planted sorghum may run into trouble with quality issues should frosts strike early.
