The surging US sorghum trade with China could face a clampdown from authorities in Beijing, who are trying to reduce domestic grain inventories, US agricultural officials have warned.
The Chinese government had “begun to pay close attention to the rapid increase in sorghum imports, and some policy makers reportedly believe these imports make it harder for the government to dispose of its large corn stocks”, according to the latest China grains report from the Beijing bureau of the US Department of Agriculture.
China’s sorghum imports jumped in the year to September 2014, increasing more than sixfold to 4.2m tonnes from the previous year and are forecast to double to 8.5m tonnes in the 12 months to 2015, with the bulk of the commodity coming from the US.
The report from Beijing warned that the numbers could change due to stricter testing of sorghum shipments.
“import officials have recently begun to enhance inspections, and traders are voicing concern that the government may be getting ready to take more concerted action to limit imports,” it said.
News of the USDA warning was first reported by Agrimoney.com.
The surge in demand for sorghum comes as the Chinese government’s grain purchases under its agricultural support programme have pushed up domestic prices for corn.
Feed mills have been importing cheaper alternatives, including sorghum and barley, which are also not subject to official import quotas.
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