September 26, 2008

 

EU a potential large market for US sorghum
 
 

There is a great long-term opportunity US sorghum to be exported into the EU, according to Troy Skarke of the National Sorghum Producers and US Grains Council (USGC) board member.
 

A USGC team visited left on Thursday (September 25, 2008) to Germany and Spain to explore US sorghum export opportunities in each market.

 

The opportunity is great because end-users will have better access to sorghum, know how to use it and will include it into their rations at high inclusion rates, Skarke said.

 

Last year, nine EU countries imported US sorghum for the first time, making the region the US' largest sorghum export market, according to Skarke. Mexico imported more US corn due to the competitive price for US sorghum spurred by the new demand from the EU.

 

Chris Corry, USGC senior director of international operations, said many feedmills worried about the market had bought feed wheat at a high price, but the EU is likely to purchase US sorghum in May 2009.

 

"This period bodes well for the US as the EU would be buying for July, August and September delivery. By then, the new crop will be in and prices should be reasonable in the US," Corry said.

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