Cash Strategist – 11/27/2024

Brazil-China sorhum trade

Producers in the United States are in the heart of their typical seasonal export window, as new crop supplies are out of the field and ready to ship and old crop supplies in South America are beginning to dwindle following months of good business after their harvest last spring.

In the news this week has been a meeting between Chinese President Xi Jinping and his Brazilian counterpart President Luiz Inácio Lula da Silva on the sidelines of the annual G20 economic summit, which was held in Rio de Janeiro, Brazil.

The meeting produced nearly 40 agreements in a number of different sectors, several related to agriculture.

Of those pertaining to ag, one that raised a few eyebrows was an agreement to allow Brazilian exporters to ship sorghum to Chinese markets.

Sorghum is a field crop that...