China’s sudden decision to increase its imports of US sorghum, is not a one-time-thing, says US Grains Council’s (USGC) manager of global trade, Alvaro Cordero.
Unlike corn and wheat, sorghum is not subject to China’s tariff rate quota. Tariffs are at 2 percent for food use and 9 percent for feed with a 13 percent value added tax.
According to Cordero, today’s US sorghum price is trading at a US$40 (€29.869) per metric ton price advantage over Australian origins. This provides a strong incentive for importers and end-users to purchase sorghum from the United States.
China is currently expecting a delivery of 600,000 metric tons. However some traders expect that to be significantly higher in the upcoming crop year.
Read on: China increases imports of US sorghum | Global Milling.