Mexico Interest In Sorghum Strong Despite Tight World Market

Attending the 2015 APPAMEX North American Export Grain Association (NAEGA) Forum last week in Puerto Vallarta, Mexico, U.S. Grains Council (USGC) representatives were peppered with questions about China, sorghum and the likely implications for Mexican buyers, showing strong interest the commodity despite China’s recent buying surge and its effect on world prices.

Attending the event on behalf of the Council were Julio Hernandez, USGC director in Mexico; Mike Dwyer, USGC chief economist; and Alvaro Cordero, USGC manager of global trade.

“Mexican end-users are intrigued by how China now controls the sorghum market, and they wonder what to expect in the next few months,” Hernandez said.

Video: Kansas Corn CEO Reflects on Mexico Ethanol Mission

Last week, the U.S. Grains Council (USGC), the Renewable Fuels Association (RFA), Growth Energy and U.S. Department of Agriculture’s (USDA’s) Foreign Ag Service (FAS) teamed up to lead a mission of U.S. ethanol industry representatives to Mexico to explore potential in that market. One mission member, Greg Krissek, CEO of Kansas Corn, reflected on his recent mission in this video.

Monopolies, Reform Policies, MTBE and U.S. Ethanol Exports

Mexico ethanol

By: Ashley Kongs, U.S. Grains Council Manager of Ethanol Export Programs

This week, the U.S. Grains Council (USGC) and its partners, the Renewable Fuels Association (RFA), Growth Energy and U.S. Department of Agriculture's (USDA's) Foreign Agriculture Service (FAS), are conducting a mission to Mexico to explore the potential ethanol market in that country. This comes on the heels of Pemex’s announcement earlier this year that it would invest 880 million pesos ($58 million USD) in infrastructure upgrades to handle and blend ethanol into gasoline in Mexico. Pemex holds a monopoly on Mexico’s gasoline market.

Video: USGC Expands DDGS Initiative in Southern Mexico to Sheep

Last year, the U.S. Grains Council (USGC) launched a new initiative in Southern Mexico and completed a distiller’s dried grains with solubles (DDGS) feeding trial that determined there is a large potential demand for U.S. DDGS in cattle feed rations in the region, previously was an underserved market. Today, the Council is expanding that trial to include another ruminant animal, sheep.

Expanding U.S. Sorghum Sales in An Established Top Market

Its proximity to the United States and ability to receive grain by truck, rail and vessel has helped Mexico be a top customer for U.S. sorghum for years. In the 2013/2014 marketing year, Mexico was the third largest market of U.S. sorghum and the United States, especially Texas, continues to be the best option to meet the country’s sorghum demand.

“Mexican buyers appreciate the quality and reliability of U.S. sorghum,” said Javier Chavez, U.S. Grains Council marketing specialist in Mexico. “And U.S. producers haven’t forgotten their southern market.”

U.S. DDGS Exports Up 48 Percent

The United States recorded its highest ever monthly exports of distiller’s dried grain with solubles (DDGS) in July, bringing the total U.S. DDGS exported this marketing year to 7.2 million metric tons, a 48 percent increase over the same time period last year.

Behind this market expansion are U.S. Grains Council educational seminars and feeding trials, complimented by consistent end-user contact and support. In emerging markets around the world, the Council continues to work to expand the market for U.S. DDGS.

Latin America’s Barley Sector Builds Ties with U.S. Producers and Exporters

Javier

By: Javier Chavez, U.S. Grains Council Marketing Specialist in Mexico

Latin America’s primary use of barley is in the brewing sector, either as malt or malting barley. To strengthen this growing sector’s ties with U.S. barley producers and malt exporters, the U.S. Grains Council recently escorted two teams from Latin America and Mexico to key U.S. barley growing areas including Colorado, Montana and North Dakota.

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