January 5, 2008

Mexico tops US oilseeds market  

Mexico is still the biggest buyer of US oilseed due to geographic proximity and good market promotion efforts, reports the US Department of Agriculture.

Imports will continue to be dominated by soy, followed by rapeseed, peanuts, and sunflower seeds.  The US is expected to hold approximately 73 percent of the Mexican oilseed import market, followed by Canada. Rapeseed consumption is expected to increase as crushers move away from soy and sunflower seeds to rapeseed, due to its higher oleic content. 

Total oilseeds consumption is estimated to increase by two percent in the coming year; primarily attributable to the livestock sector. The poultry sector continues to be the major consumer of soymeal in Mexico.

Mexican production of oilseeds is very limited and highly dependent on imports. Five companies represent nearly 80 percent of crushing capacity in Mexico.  These include HISA, Agydsa, Ragdsa, Cargill, and La Corona. 

Domestic soy production accounts for less than 3 percent of total consumption, with the remainder coming from imports. Mexican peanut production is expected to remain unchanged in marketing year (MY) 2007/08, due to unattractive domestic prices and practically nonexistent government supports.  Rapeseed and sunflower production are basically non existent.

For more of the USDA report, please click here