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National Sorghum Producers says that the USDA Prospective Plantings report shows an 11% rise in sorghum acres for 2020, but that greater gains are possible. Chinese purchases approaching one million metric tons over seven weeks have lifted basis, and export sorghum now commands a 13% premium.
New crop basis has gained $0.20 to $0.40 at interior elevators over two weeks.
Basis gains driven by export demand give farmers an incentive to plant more sorghum, which could add supply later. In the near term, firm basis supports sorghum prices against corn.
agnews890.comTodd IngstadApr 2, 2020Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
