This U.S. Grain Market Got Spooked by a Chinese Trade Probe
- Price of sorghum, mostly used as animal feed, slides 9.9%
- China announced at start of the week probes into U.S. imports
Photographer: Daniel Acker/Bloomberg
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Prices in the U.S. Midwest for sorghum, a grain commonly used to feed livestock, have plunged after China announced that it began an anti-subsidy and anti-dumping investigation into American imports.
The cash price in Kansas City, Missouri, has declined about 9.9 percent this week to 5.64 cents a pound, according to U.S. Department of Agriculture data compiled by Bloomberg. The price hit a 20-month high on Feb. 1 as Chinese imports surged and U.S. inventories shrank after last year’s hot weather. China’s Commerce Ministry confirmed the probe three days later.