Hang Tung, a Chinese analyst, said that Brazil's sorghum imports are limited now but will increase in 2026.

The head of Chinese sorghum trader Hang Tung’s Brazilian unit said that tight supplies were limiting Brazil's sorghum shipments in the first half of the year. He added that the business would 'pick up' in the second half of the year. Brazil has not traditionally been a sorghum producer, but China, the world's biggest buyer, authorized 10 Brazilian companies to import sorghum in November last year amid a dispute with the U.S. Gabriel Cordeiro is the country manager for Hang Tung in Brazil. He said that exporters are competing with grain-ethanol and animal feed producers. Gabriel Cordeiro, the Brazil country manager for Hang Tung, expects the business to improve after the arrival of the new crop and the Chinese demand.

According to the state-owned food agency Conab, Brazil will harvest nearly 10% more sorghum than in previous years.

Liquidity has limited Brazil's production. China is buying between?6 and 9 million tons per year, depending on which year it is. This improves liquidity for producers," Cordeiro stated. He didn't specify how much Hang Tung - one of the largest sorghum dealers in the world, who handles between 2.5 and 3 million tons per year from different origins - could buy from Brazil. The grain-ethanol plants that use sorghum as a biofuel have also encouraged?more production. Cordeiro said that China may play a larger role in the Brazilian market for sorghum as the crop grows.

He said: "We are very confident about the future of Brazil's production of sorghum and China's demands." In January, Brazil sent its first sorghum cargo since 2014. The shipment, which weighed 25 tons, was made by either a small importer or a buyer who wanted to try the Brazilian product, according to a previous market source.

Cordeiro stated that although China approved 10 Brazilian facilities for sorghum exports last year, "minor clarifications and adjustments" are still needed to increase exports. This includes additional export authorizations.

He said, "There are a few companies that still need to be authorized. This is one of the topics being discussed in order to increase the flow." Reporting by Roberto Samora. Oliver Griffin and Isabel Teles. Sonia Cheema, Mark Potter and Mark Potter (Editing)

(source: Reuters)