March 26, 2008

Livestock and ethanol will prompt Mexico to increase grain imports

Mexico's total imports for grain and feed are likely continue to increase in for 2008/09 period due mainly to its fast-growing  livestock sector, according to the USDA.

Its latest report said high grain prices will likely encourage producers to expand production in sorghum and corn. Corn production is forecast at 22.750 million tonnes for 2008/09, or one percent greater than the previous year, while sorghum production is estimated at 6.45 million tonnes, an increase of 150,000 tonnes or about 2 percent. 

The first ethanol plant in Mexico, scheduled to open May 2008, will use nearly 270,000 tonnes for production, which impact the national crop markets, the report said. .