April 10, 2008

Cargill buys 80 percent more white corn from Mexico

US grains giant Cargill Inc. said Wednesday it has pre-purchased 900,000 tonnes of Mexico's upcoming 2007-2008 fall-winter white corn harvest in Sinaloa state.

Robert Day, general director of Cargill's Mexico grains division, said that the company had increased purchases this year to ensure that demand from the key tortilla sector would be met without problems despite increasing prices in volatile global markets.

Day said the purchase was up sharply by 80 percent from last year when the company bought 500,000 tonnes from the Sinaloa harvest.

The harvest in the 2006-2007 cycle ended up 16 percent at a record 4.76 million tonnes.

Cargill expects purchases from the 2007-2008 crop of white corn from the central state of Jalisco to remain stable at between 200,000 and 300,000 tonnes.

Day also said that the 2007-2008 white corn harvest in Sinaloa is expected to start in early May, while the Jalisco harvest will not start until October.