GLOBALLY focused grain commodity trader PentAG Nidera has predicted the 2015 sorghum crop will be the most valuable on record, worth more than $620 million at the farmgate.
Over the past 10 years, the Toowoomba-based company has grown to become the largest sorghum exporter in the country and formed strong partnerships with farmers to supply sorghum, wheat, barley chickpeas and cottonseed to south-east Asia and the Middle East, with a particular focus on China, Japan and India.
PentAG Nidera handled 40 per cent of exports this year and predicts the coming growing season will produce the largest sorghum volume exported in the past 30 years. With an estimated volume of 1.5 million tonnes, much of this will be exported to China.
PentAG Nidera's accumulation manager Steve Sloss said that, with port prices trading between $260 and $330 a tonne this season, the value of exports alone could top a record $500 million.
"The opportunities for growth for sorghum in Australia are enormous, driven by the extraordinary prices from Chinese buyers sourcing sorghum over US corn for feed rations," Mr Sloss said.
"PentAG Nidera is now shipping all of our bulk sales and 90pc of our container exports direct to the Chinese market. We have been loading ships since April and our program is now more than 50pc complete, with the balance of the bulk program to be loaded from Mackay and Newcastle. We see significant potential in this market."
New crop values compared with wheat and barley would encourage growers to again plant historically high sorghum hectares next season, weather permitting.
"We have worked hard over the two years to develop the Chinese market, with our people on the ground in China making the contacts and building the reputation of Australian sorghum as a quality product," Mr Sloss said.
"The message to Australian sorghum growers is that the demand is there and we can sell sorghum into the Chinese market."
Condamine Plains grain grower Chris Hornick, Allambie, won't increase his sorghum plant this year, opting to spread his risk because of uncertainty about seasonal conditions.
Mr Hornick would normally plant 1000 hectares to sorghum but is fertilising country to plant 400ha to the G22 and G33 Pioneer mid-season varieties that suit his lighter loamy soil.
He has good sub-soil moisture and will plant into standing mungbean, corn and sorghum stubble in October for a March harvest.
Mr Hornick is hoping 50mm of rain will fall before his anticipated planting.
"Normally I would forward- sell about one-third on my crop, but at this stage I am holding back due to the lower rainfall prediction," Mr Hornick said.
"However, with all the market predicts at this stage, I will hope to sell it for between $280 and $300/t or better, and that would be similar to last year.
"There is no doubt that sort of money for sorghum is the best money for dryland crops."
"But I will still spread my risk and plant mungbeans, chickpeas and corn, as those prices are very good too."
