Brazil's sorghum exports limited for now, to pick up later in 2026, says China's Hang Tung

By Roberto Samora

SAO PAULO, March 2 (Reuters) - Tight supplies are constraining Brazil's sorghum exports in the first half of this year, the head of Chinese sorghum trader Hang Tung's Brazilian unit told Reuters, adding that business should pick up in the second half of the year.

Brazil is not traditionally a sorghum exporter, but China - the grain's largest buyer - authorized imports from 10 Brazilian companies last November amid a trade dispute with the U.S., historically the Asian country's top supplier, giving producers in Brazil room to grow.

Exporters are currently competing with animal feed and grain-ethanol producers, said Gabriel Cordeiro, Hang Tung’s Brazil country manager. He expects business to improve in the second half, once the new crop arrives and on expectations of Chinese demand.

Brazil is expected to harvest 6.7 million metric tons of sorghum in the 2025/26 season, nearly 10% more than the previous crop, according to state food‑supply agency Conab.

"Brazil is interested in producing, but output has been limited by liquidity. With China coming in - buying around 6 million to 9 million tons a year, depending on the year - liquidity improves for producers," Cordeiro said.

He did not specify how much Hang Tung, one of the world's largest sorghum traders, which handles 2.5 million to 3 million tons a year from multiple origins, could buy from Brazil.

Grain-ethanol plants, which use sorghum to produce biofuel, have also been encouraging more production. China could play a bigger role in the Brazilian sorghum market as the crop expands, Cordeiro added.

"We are very optimistic about both the future of Brazil’s sorghum production and China’s demand," he said.

Brazil shipped its first sorghum cargo to China since 2014 in January. Totalling just 25 tons - essentially a single container - the shipment was likely made by a small importer, or by a buyer looking to test the Brazilian product, a market source previously said.

Although China authorized 10 Brazilian facilities to ship sorghum last year, some "minor clarifications" and adjustments are still needed for exports to ramp up, including additional export authorizations, Cordeiro said.

"There are a few more companies waiting for authorization, and that’s one of the points being discussed to increase the flow," he said.