MEXICO CITY, MEXICO — Similar to many countries around the world, economically Mexico is grappling with the effects of the coronavirus (COVID-19) pandemic. However, the country’s soybean demand is not expected to be hindered by the outbreak, according to an April 17 Global Agricultural Information Network report from the Foreign Agricultural Service of the US Department of Agriculture (USDA).
Mexico’s soybean imports for 2020-21 marketing year are expected to climb to 6.1 million tonnes, an increase of 100,000 tonnes, the USDA said. Stronger demand from feed, processors, and population growth increased the country’s imports.
Feed demand is also the common theme for a rise in the country’s oilseed consumption and crushing.
Oilseed consumption is forecast to increase 1% in the 2020-21 marketing year as poultry is one of the cheaper animal protein sources for Mexican consumers, the USDA said. Mexico’s soybean consumption is estimated to total 6.302 million tonnes.
Soybean remains the primary oilseed imported into Mexico and is crushed domestically. Oilseed crushing is expected to increase with continued demand for feed. The USDA expects Mexico to crush 6.25 million tonnes of soybeans in the 2020-21 marketing year.
The country’s soybean production is forecast to remain at 250,000 tonnes for the 2020-21 marketing year due to the government’s cancellation of support programs bringing uncertainty to oilseed growers, the USDA said.
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