January 31, 2008

 

Record sorghum crop expected to relieve tight feed markets in Australia
 

 

Production from an Australian sorghum crop to be harvested in coming months could reach a record 2.25 million tonnes, well up from a revised 1.37 million tonnes from the previous crop, according to a USDA attache report posted Wednesday (January 30, 2008) on the Foreign Agricultural Services website.

 

Sorghum is Australia's major summer crop.

 

Harvest of a record sorghum crop could help to moderate a tight domestic feedgrain market, following successive years of drought-affected winter crop production.

 

Widespread rainfall has benefited the sorghum crop, a broad acre crop predominantly grown without irrigation and therefore reliant on rainfall, it said.

 

"Record high feed prices in the lead up to planting have guaranteed a historically high production number and heavy rainfall in key growing areas has resulted in increases in both area and yield," according to the report, which was completed Jan. 24.

 

On Jan. 11, USDA forecast new crop sorghum output at 2.10 million tonnes.

 

The previous record Australian sorghum crop of 2.12 million tonnes was harvested in 2000.

 

Perhaps the only downward pressure on sorghum production is the prospect of rain continuing through harvest. Damage to grain, as well as the general logistical disruption, could provide significant difficulties for sorghum production in coming months, according to the attache's report.

 

The bulk of the increase in production is likely to be consumed domestically, with exports from the new crop remaining historically low at about 200,000 tonnes, it said.

 

"Industry sources suggest that exports of Australian new crop grain sorghum are about to begin," it said.

 

Harvest of the sorghum crop usually starts at around this time of the year and continues through July.