uploads///Sorghum No  Yellow Price

Sorghum: Prices Fall and Production Is Expected to Rise

Adam Jones - Author
By

Nov. 20 2020, Updated 1:25 p.m. ET

Sorghum

The total sorghum production in the world is expected to be about 54.1 million metric tons in the 2014–2015 season. Once again the US is the top producer of sorghum. It’s expected to produce 10.9 million metric tons in the 2014–2015 season.

In the above chart you can see that the sorghum prices have trended downward. As of June 19, 2015, the price of sorghum, No. 2 Yellow, was $6.18 per bushel. Sorghum prices have also fallen since 2012 like corn, soybean, and wheat prices. The global yield is expected to 1.31 metric tons per hectare in the current 2014–2015 season—from 1.39 metric tons per hectare in the previous season.

However, the overall production is expected to be higher at 53 million metric tons—compared to 50.7 million metric tons in the previous season. This could maintain the downward pressure on sorghum prices.

In April 2015, 0.9 million metric tons of sorghum was exported. It fell 24% from 1.5 million metric tons exported in March 2015.

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Sorghum farming

Sorghum accounts for about 2% of the acres used to plant principal crops in the US. About 7 million acres were used to plant sorghum. Of this, 6.4 million acres were harvested—about 89% output. In 2015, corn is expected to have $46 billion, or 25%, of the total crop cash receipts—according to the USDA (United States Department of Agriculture).

You may consider the VanEck Vectors Agribusiness ETF (MOO). It holds about 6.6% of Archer Daniels (ADM) and 3.2% of Bunge (BG). MOO also holds 6% of Potash (POT) and 4% of Mosaic (MOS). They’re fertilizer producers.

Key takeaways

  • The prices for corn, soybean, wheat, and sorghum have fallen constantly since 2012. The weather has been favorable for these crops.
  • The summer weather in the current 2014–2015 season is also favorable, according to Reuters. This could explain why the prices have fallen for the four commodities mentioned above.
  • The global yield for wheat, corn, and soybeans is expected to rise in the 2014–2015 season.
  • The production for all four crops is expected to rise in the 2014–2015 season.

To learn more, visit Market Realist’s Agriculture page.

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