"A 15-fold increase in imports of US sorghum by China over the past year has pushed its price above corn’s in parts of the US, a rarity that highlights how policy shifts by Beijing can have a far-reaching impact on the global grain trade. * * * Some Kansas grain elevators are offering farmers about 10% more for sorghum than for corn, inverting the roughly 10% premium corn usually fetches. There is no futures market for sorghum, so traders use corn futures to benchmark prices and manage risk.
"In the first 11 months of 2014, shipments of US sorghum to China jumped to 5.7 million metric tons valued at $1.3 billion from about 362,000 tons a year earlier, according to the U.S. Department of Agriculture. Before 2013, China had bought only tiny amounts from the U.S., the world’s largest sorghum producer and shipper.
"Chinese companies are snapping up the grain to feed pigs, chickens and ducks because it is cheaper to import sorghum than to buy corn produced in China, analysts said. Domestic corn prices are high [thanks to Beijing-set price floor to benefit corn farmers]. In addition to feed, some U.S. sorghum exported to China is used by its liquor industry for beverages including baijiu, the popular Chinese spirit, according to US industry officials.
"China’s imports of US corn fell sharply last year after Beijing rejected shipments containing [GMO] * * * Analysts said US sorghum has gained traction with China in part because no genetically engineered varieties are sold in the US, meaning [no hassle passing through China's customs]