Skip Navigation Links
Home
InstitutionalExpand Institutional
Grains MarketExpand Grains Market
Capital MarketsExpand Capital Markets
Livestock MarketExpand Livestock Market
Grain Arbitration BoardExpand Grain Arbitration Board
Arbitrage CourtExpand Arbitrage Court
Ingresar

 News

11/09/2017 0:00 - Agricultural Commodities Market
SOFÍA CORINA
What about sorghum? The challenge against corn

Over the years, sorghum has progressively lost terrain to corn. Sorghum world demand has been replaced for others feed grains. According to IGC, global sorghum consumption is expected to reach its lowest level in the last four years in the 2017/18 marketing year.

In Argentina, sorghum is mostly used as animal feed, while its exports have lost importance in the last recent years. According to Minagri, total exports from Argentina in the 2016/17 MY will be around 300,000 tons; three time less than in the 2014/15 season.

 

The 2014/15 was a particular season given that China started importing Argentinian sorghum, which boosted expectations for new. However, it was an isolated fact that represented 89,000 tons. Argentina’s main export destination for sorghum is Japan, which accounts for 68% of total sales, but its purchases have been decreasing over the last season.

Argentina ranks 3rd as a global sorghum exporter with 9% of market share, preceded by EE.UU (75%) and Australia (12% of total exports). Both of countries’ competitiveness is boosted given their short distance to consumption points. The following IGC chart shows FOB prices evolution of the main origins during the last year.

 

In Argentina, the decline of sorghum prices, the lack of market liquidity and the competitiveness of corn for animal feed discourage the farmer from sowing sorghum. It is estimated that the sowing area in the 2017/18 season could drop to its lowest level in 9 years.

It is important to mention that given the quality of its soils, Argentina has the potential to become one of the main sorghum producers if the agribusiness atmosphere allows it. Sorghum requires a low initial investment and can support extreme weather conditions (like thermo-hydric stress), being a good alternative for poor soils.

Sorghum can also be used in the production of bioethanol and biogas to diversify the Argentinian energy matrix. In this sense, we should highlight the work of INTA, which promotes genetic improvements aiming at greater productivity and specific uses.

 

 Institutional video


Institutional Video of the Bolsa de Comercio of Rosario (Rosario Board of Trade)

 Rosario Board of Trade

The Rosario Board of Trade is a centennial institution located in Rosario, in the most important agroindustrial zone of Argentina. Throughout its history it has created and boosted transparent, solid and reliable markets: the Grains Physical Market, the Futures Market, the Capital Market, and the Livestock Market.

[Read +]

 
 
Bolsa de Comercio de Rosario Córdoba 1402 - S2000AWV
TE: (54 341) 5258300 / 4102600
TE: (54 341) 5258325 (Complejo de Laboratorios - servicioalcliente@bcr.com.ar)
Rosario - Santa Fe - Argentina

Oficina Buenos Aires Reconquista 458 piso 7° - C1003ABJ - Cdad. de Buenos Aires.
Tel: (54 - 011) 43280390/1484 43939391/9649- Fax: (54 - 011) 43939649
contacto@bcr.com.ar