Who doggies.. been a long pull but just about to wrap it up..

Checked export basis levels this morning..

http://www.ams.usda.gov/mnreports/jo_gr112.txt

Louisiana and Texas Export Bids

Gulf Export bids and basis for grain delivered to Gulf export elevators,
CIF barge to Louisiana Gulf (Mississippi River) and rail-truck Texas Gulf,
delivery periods as specified, dollar per bushel, except sorghum per cwt.
Bids as of 2:00 Central time; Subject to change.
_
Louisiana Midday bids and basis for US 2 Soft Red Winter Wheat
Cash Bids                Change              Basis          Change
Oct=   6.0275-6.1275     dn 9                 +85Z to +95Z  unch
Nov=   6.1775-6.1875     dn 9                +100Z to +101Z unch
Dec=   6.1775-6.1875     dn 9                +100Z to +101Z unch
Jan=   6.2600-6.2700     dn 9.25              +95H to +96H  unch
Feb=   6.2600-6.2700     dn 9.25              +95H to +96H  unch
Mar=   6.2600-6.2700     dn 9.25              +95H to +96H  unch
_
Louisiana Midday bids and basis for US 2 Yellow Corn
Cash Bids                Change              Basis          Change
Oct=   4.1900-4.2200     dn 1.75-dn 2.75      +66Z to +69Z  up 5-4
Nov=   4.1900-4.2500     dn 5.75-dn 0.75      +66Z to +72Z  up 1-6
Dec=   4.2900-4.3000     dn 4.75              +76Z to +77Z  up 2
Jan=   4.3275-4.3575     dn 6.75-dn 5.75      +66H to +69H  unch-up 1
Feb=   4.3275-4.3575     dn 6.75-dn 5.75      +66H to +69H  unch-up 1
Mar=   4.3275-4.3375     dn 6.75              +66H to +67H  unch
_
Louisiana Midday bids and basis for US 1 Yellow Soybeans
Cash Bids                Change              Basis          Change
Oct=   10.9250-11.0250   dn 15.75            +115X to +125X unch
Nov=   10.9250-10.9750   dn 15.75            +115X to +120X unch
Dec=   10.9525-10.9825   dn 17.75-dn 16.75   +112F to +115F dn 1-unch
Jan=   10.9325-10.9625   dn 17.75-dn 16.75   +110F to +113F dn 1-unch
Feb=   10.8000-10.8100   dn 16.5              +90H to +91H  unch
Mar=   10.7000-10.7100   dn 16.5              +80H to +81H  unch
_
Louisiana Midday bids and basis for US 2 Yellow Sorghum
Cash Bids                Change              Basis          Change
Oct=   8.4475-8.6250     dn 12-up 4          +120Z to +130Z unch-up 9
Nov=   8.4475-8.4650     dn 12               +120Z to +121Z unch
Dec=   8.4475-8.5350     dn 12-dn 12.25      +120Z to +125Z unch
Jan=   NA                                       NA
Feb=   NA                                       NA

So you got Sorghum at + 125 Z vs Corn that is + 68 Z.. 57 better for Sorghum.. (wow!)  This is especially impressive when you look at Sorghum exports at 112 myn bu this year vs 49 myn bu this time last year.. Even more impressive is that USDA currently has the Sorghum crop at 404 myn bu... so a quarter of the crop is ALREADY SOLD.. and they're still looking for more..??

Hutchinson Kansas is bidding 3.73 per bushel for Sorghum vs 3.43 for Corn.. a $.30 premium.

All begs the question.. "What's up?"

I don't know but the conventional wisdom is that China is constrained by Tariff's from importing Corn at such and such a level but there are no tariff's on Sorghum.. with domestic Chinese prices somewhere around..???  I believe $9.00 is the number that I've heard.. (could be wrong.. it's significantly higher.. even after currency and freight.. that it would work whatever the actual number is..)  Anywho.. they can only import "X" amount of Corn.. but Sorghum is (so far) unlimited.. thus.. with booked freight.. the boats are showing up.. so.. got to load them with something...  A good chunk of the US Sorghum harvest is in South Texas.. so we've had "new crop" since the end of July down there.. (probably part of the reason also..??)

Anywho.. I would expect that other importers of Sorghum could switch to CHEAPER US CORN..  As well as we get a bump in Sorghum acres vs other things.. such as Soybeans.. and Corn..???  (do you want an Extra $.30 per bushel?)

Granted not everyone is seeing a premium sorghum market.. first off.. corn is a pretty stout basis usually in SW Ks and the Okla and Tx Panhandles.. so.. pretty hard to beat the gold standard already.. 2nd Not everyone has access to unit train loaders or booked trains.. such as Hutchinson Kansas... ya need both this year.. ;-)

So enjoy it if ya got it.. AND don't take it for granted..  just a "unique" thing that you don't see too often.. but "here it is again" this year... ???  Who'd of thunk it?

IF this continues.. Sorghum wants to Apply for "Major FeedGrain Status.."  "What IF" we switched 5 myn acres from Soybeans..(with $9 beans.. doesn't sound like that would be too tough..) and a couple myn from Corn.. If we raised a byn bushel sorghum crop... other than making the WHOLE Middle of the country ITCH this time of year.. COULD we SELL IT?

hmmm...???

It's cheaper to grow.. it's pretty tough.. handles the drought's better.. only thing lacking was an market.. (see above..)  So..????

They still need a GMO "ITCH FREE" sorghum.. then I'm all over it.. but golly... just the THOUGHT of Growing more Sorghum makes me itch.. but hey.. If they put some $$$ behind it...???