USDA lowers sorghum ending stocks guess
The USDA has lowered its sorghum ending stocks estimate for the current marketing year because of strong demand.
The USDA cut domestic feed use despite reports of sorghum being substituted for corn in some livestock feed rations but raised export use because of strong demand from China, which uses sorghum for livestock feed, renewable fuels, and beverage alcohol.
Stocks are expected to rebound somewhat next marketing year with the USDA projecting a bigger crop, but expected demand will keep supplies relatively tight and support farm prices.
The current marketing year for sorghum runs through the end of August.
The USDA’s next set of supply and demand estimates is out June 10th.
Breakdown of sorghum supply and demand table:
2020/21 U.S. sorghum ending stocks are projected at 18 million bushels, compared to 23 million in April and 30 million for 2019/20. The USDA lowered feed and residual use 5 million bushels to 70 million, putting domestic use at 80 million bushels, and raised exports 10 million bushels to 305 million, for total use of 385 million bushels. The average 2020/21 farm price is estimated at $5.05 per bushel, steady a month ago and up from the average of $3.34 in the previous marketing year.
2021/22 U.S. sorghum ending stocks are seen at 20 million bushels. Production is expected to be 427 million bushels, with feed use at 65 million and exports of 350 million bushels. The average 2021/22 farm price is estimated at $6.10 per bushel.