National Sorghum Producers Chair Amy France, a Kansas farmer, says significant questions remain around CME Group’s announcement of a proposed sorghum futures contract. If approved and widely adopted, the contract could reshape how grain sorghum is priced and traded in the U.S. If successful, it would be a new tool for managing price risk while improving transparency and price discovery in the sorghum market. France notes, however, that growers provided recommendations for more appropriate delivery points and other safeguards to support contract liquidity. Still, those recommendations are not reflected in the proposed CME product, which relies on a wheat-market model. “As implementation moves forward, we will continue advocating for improvements, seeking answers to outstanding questions and ensuring producers have the information they need to understand the product and its potential impact,” France says.
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