Texas Sorghum Insider

January 6, 2017

Consider Sorghum Reference Price When Making Planting Decisions—Sorghum producers should consider the impact of the $3.95 reference price for sorghum when making 2017 planting decisions as National Sorghum Producers believes significant upside potential exists for 2018 Price Loss Coverage (PLC) program payments. This probability is of particular importance for producers with generic base (cotton) acres. For example, a producer planting sorghum on generic base acres with a PLC yield of 70 bushels would receive a payment of $47.60 per acre if the national marketing year average price for the crop planted this spring is $3.15. Producers should remember a commodity rally would mean additional market value, not lost program payment opportunity. A market rally is likely to include all commodities, thus reducing all program payments. This makes the $3.95 reference price a true price floor.

Sugar Cane Aphid Research and Exchange Meeting Held in Dallas—Hosted by Dow, Bayer and the United Sorghum Checkoff Program more that 50 research scientist, entomologist and agronomist met this week to review current research as well as chart a path to control the SCA. Of great interest were projects that focused on impact of seed treatments, variety selections and spray treatment for various types of infestations. Researchers from California to Georgia gave over 25 presentations regarding aphids. “It is very ensuring to know that copious amounts of research and extension are being done to rid our industry of this pest,” said Wayne Cleveland, executive director of TGSP. “Texas has concerted a great effort to better understand how to identify and control SCA but research needs to continue to ensure the pest is a thing of the past. I am confident, through research funded by TGSP and USCP this will be accomplished.” Discussions also centered around seed varieties exhibiting the most promise of being aphid resistant as well as on-going seed breeding to include an aphid resistant trait into seed. The meeting will continue in the coming years and expand to include other topics as deemed necessary to add profitability to growing sorghum.

Texas Legislative Session—Next Tuesday, January 10, the 85th Texas Legislature will convene in Austin. Over the interim, Texas Grain Sorghum Association committed substantial time and resources to growing our footprint in state policy matters. After the 84th Session in 2015, TGSA hired Patrick Wade to work full-time on state policy issues, and his residence in Austin will help to ensure that you stay up-to-date on legislative proceedings. This newsletter will house updates from Patrick about the progress of agriculture legislation and general state policy developments. We will also provide you with other avenues to stay informed about what’s going on in Austin as session gets underway. If you have any questions or legislative issues you wish to discuss, do not hesitate to contact Patrick at patrick@texassorghum.org.

Texas Cuba Trade Alliance Upcoming Events—TCTA will hold a workshop on “Doing Business with Cuba” in Austin, Texas on Jan. 23. To see more details about the event, please click here. TCTA will also conduct the same workshop in Houston Jan. 24. The agenda can be found here. Registration documents for either event can be found here.

Market Perspectives—Sorghum: Net sales of 30,700 MT for 2016/2017 resulted as increases for China (64,500 MT, including 58,000 MT switched from unknown destinations and decreases of 3,200 MT), Mexico (17,900 MT), and Indonesia (3,300 MT), were partially offset by reductions for unknown destinations (55,000 MT). Exports of 115,000 MT were down 57 percent from the previous week and 31 percent from the prior 4-week average. The destinations were China (108,800 MT), Mexico (5,700 MT), and Nigeria (400 MT).screen-shot-2017-01-05-at-9-31-30-pm