China will open its markets to Argentine sorghum this year, according to Argentina, creating competition for the US farmers who have been the main beneficiaries so far of a surge in Chinese demand for the grain normally used to make distilled alcohol.
High prices of corn in China have forced animal feed producers to turn to sorghum as a cheaper alternative, especially after Chinese quarantine officials began more strictly enforcing restrictions against imports of certain types of genetically modified corn.
Imported corn and sorghum cost less than domestic corn thanks to Beijing’s minimum price policy designed to encourage the planting of corn.
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