Loading…
US ethanol producers in Kansas and Texas are buying discounted sorghum after Chinese buyers backed out of deals following Beijing's anti-dumping tariffs. Sorghum traded at $3.37 per bushel versus about $3.67 for corn in Garden City, Kansas, last week, roughly where the two were at parity before the investigation.
Cheap sorghum displaces corn in ethanol and feed rations, supporting sorghum demand domestically while weighing on the sorghum-to-corn price relationship. Sustained ethanol buying could firm US sorghum basis even as export demand collapses.
reuters.comMichael HirtzerApr 30, 2018Not enough comparable past events yet for a historical read.
After 480 past neutral trade events, Corn moved a median +0.2% over 5 sessions (54% higher; middle half -1.1% to +1.6%), and +0.7% over 20.
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.
