Texas and Kansas ethanol producers pick up cheap sorghum thanks to China

In Texas, Reuters reports that ethanol producers in Texas and Kansas are benefiting from the import deposits of 178.6 percent China slapped on sorghum—the crop’s main export marketing—sending prices tumbling into a deep discount. Conestoga Energy Partners bought up nearly 10 million bushels of sorghum destined for export at a 10% discount to corn. ADM said it is still reviewing the economic of using sorghum in its own plants but confirmed it was selling sorghum it had sourced for export to China to US ethanol plants.

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