13 Apr Grain Sorghum Prices Are Holding Strong
Cotton Pricing Got You Down?
Corn Looking Unattractive?
Grain Sorghum Prices Are Holding Strong!!!
World markets for cotton are depressed due to lack of demand for textiles. Likewise, reduced fuel demand is pressuring Ethanol prices and challenging corn prices. But KSU Ag Economist Daniel O’Brien is bullish on grain sorghum and believes prices will stay strong. It is getting a big boost from the Phase 1 U.S.-China trade agreement and China’s focus on increasing it’s domestic corn production at the expense of sorghum acres. USDA-Foreign Ag Services just reported China has preordered another 20 million bushels of U.S. grain sorghum.
Current Sorghum prices are strong enough to cover direct expenses, while corn and cotton prices are struggling to cover them (See table below). Sorghum has the potential to provide a positive return of over $20 per acre while returns for corn and cotton are in negative territory. Add to that the lower cost of seed and reduced risk from drought and grain sorghum looks very attractive in today’s market.
|Crop†||Direct Expenses per bushel or pound||Seed Cost ($/acre)||Return over Direct Expenses ($/acre)‡|
|† Source: KSU Cost-Return Budgets for Southwest Kansas, dryland rotation|
|‡ Prices based on Fall 2020 futures and current local basis
(Sorghum = $3.46/bu; Corn = $3.40/bu; Cotton = $0.51/lb)
So as you consider what crops to plant this during the coming months, grain sorghum should be one of your top considerations. Sorghum Partners SP 43M80 and SP 68M57 are excellent choices for dryland acres on the High Plains. SP 74M21 is an excellent choice for your irrigated sorghum acres. SP 43M80 and SP 74M21 are both highly tolerant to Sugarcane Aphids and have excellent drought packages. SP 68M57 has top end yield with moderate tolerance to SCA and can increase your returns per acre.