Chinese buyers have increased feed grain purchases due to damaged domestic corn harvest. They have booked 45 cargoes of U.S. sorghum in the past three months, triple the amount in 2025. Additionally, they are taking one million tons of Australian barley monthly since December, double last year’s volumes.
Chinese demand for barley and sorghum is driven by high corn prices in China and competitive prices in Australia. Data shows China has purchased 1.6 million tons of U.S. sorghum since November, with most headed for China. The surge in imports has boosted prices in exporting countries and provided relief to Chinese animal feed producers.
Chinese corn prices have risen about 10%, prompting the surge in feed grain imports. Australian barley prices have climbed nearly 10% in three months, while the FOB sorghum price at the U.S. Texas Gulf Coast increased by 12.6%. The national average corn price in China is around 2,250 yuan per ton, up about 10% from a year earlier.
Despite a record corn harvest in China last year, heavy rains damaged some of the crop, leading to moldy corn. The Ministry of Agriculture and Rural Affairs has not issued official damage estimates. Rising demand for barley and sorghum is attributed to corn quality issues and high prices, according to industry experts.
Beijing manages corn imports through quotas, allowing 7.2 million tons annually at a 1% tariff. Imports above the quota face higher duties of 65%. Due to unusable corn as feed and minimal corn imports in 2025, there is a tighter supply environment, leading to strong demand for sorghum and barley imports.
Read more at Yahoo Finance: Exclusive-China buyers snap up U.S. sorghum, Australian barley as domestic corn supply tightens
