Mexico: High demand for fodder grains from China affect international prices

Published 2021년 5월 20일

Tridge summary

The global market for fodder grains is experiencing volatility due to increased demand from China, droughts in Argentina and Brazil, low inventories, and inflation. China is repopulating its pig herd and purchasing soybeans and corn on the global market. The United States is also contributing to the demand with its production of ethanol. Mexico, which consumes 25 million tons of fodder grains yearly, imports 16-17 million tons of corn to supplement its production. The country consumes all domestically produced grain and only imports when its supply runs out.

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Original content

BERTHA BECERRA. THE SUN OF MEXICO. And factors such as the drought in Argentina and Brazil put "nervousness and volatility". Photo: Cuartoscuro. The great demand for fodder grains from China and drought problems in Argentina and Brazil put “nervousness” on the world market which, together with low inventories for this cycle, are the three factors that cause volatility. And to this is added inflation, the result of international effects. A year and a half ago, China had to slaughter millions of pigs for African swine fever. Today he is back and in the process of replenishing the herd and went out to buy soybeans and corn from the world. In addition, 40% of the corn crop in the United States is used to produce ethanol. Although there is a drought at the moment, the grain crops that supply the world are already in storage. The United States raises its harvest at the end of the year. Mexico has two harvests: spring-summer and autumn-winter. And traditionally, if the harvests are ...

Source: Inforural