October 30, 2020
USDA: Mexico booked record US corn imports
The United States Department of Agriculture (USDA) said Mexico grains purchasers have booked their largest corn import volume from the United States since December 2019, Reuters reported.
The purchase of 1.433 million tonnes of corn from the US comes as Mexico's farmers said they cannot meet domestic supply demand following government expenditure cuts.
The USDA said 891,540 tonnes of corn have been booked for export for the 2020/21 current marketing year ending August, with the rest to be exported for the next 2021/22 season.
Back in December 12, 2019, Mexico imported 1.6 million tonnes of corn.
Corn prices are at their highest since August 2019, driven by word that China is seeking to boost its corn imports by millions of additional tonnes over the next year.
Mexico usually purchases large amounts of yellow corn from the US for its livestock industry, especially during fall when there is plenty of supplies.
Mexico's Agriculture Ministry budget had been cut by a third, with subsidies that have been channeled to larger farmers cut completely. These farmers account for two-thirds of Mexico's corn production.
In a separate USDA report, Mexican purchasers have booked 5.757 million tonnes of US corn since the new marketing year, with 1.669 million tonnes already imported.
In 2019, Mexico's marketing year total for purchases hit 6.110 million tonnes of US corn, with 1.779 million tonnes of imports.