Will A Drop In Sorghum Exports Hurt Corn Values?

By Jon Scheve, Superior Feed Ingredients, LLC

Some market participants were disappointed to see no changes to corn demand in the March supply and demand report last Tuesday. I suspect the USDA is waiting until the March 31st stocks report to see what remaining supply is left in the US to make any changes to demand estimates.

USDA Updates Sorghum Demand

The USDA did acknowledge a big issue with sorghum this month. Exports decreased 70-million bushels and feed demand increased 50-million bushels. This should be something to keep an eye on as sorghum is a direct feed competitor to corn.

While many market participants think the corn export estimate should be increased, this 50-million-bushels of sorghum added to feed may offset some corn for feed if corn exports are increased. Add to that, the increasing wheat carryout and the 35-million-bushels of wheat that has already been added to feed year over year and there is potential that most of any increase in corn exports will be offset by decreases in feed.… Continue reading