MEXICO CITY, MEXICO — Sorghum production and imports in Mexico are declining as the feed and livestock sectors are opting for less expensive yellow corn, according to a Sept. 20 Global Agricultural Information Network report from the U.S. Department of Agriculture.
The agency said its sorghum production forecast for 2018-19 has been adjusted downward to 4.5 million tonnes from 4.6 million tonnes, while imports have been slashed to 350,000 tonnes from 2 million tonnes.
“Private traders emphasized that the spread between sorghum and corn pricing is expected to continue to be relatively high, encouraging corn purchases over sorghum,” the USDA said.
It also has revised downward its sorghum consumption total for 2018-19, to 4.8 million tonnes from 6.4 million tonnes.
The USDA also revised downward its rice production total for 2018-19 by 7%, to 239,000 tonnes from 259,000 tonnes.
“According to private industry sources, rice output decreased due to lower harvested area than initially estimated,” the USDA said. “Unattractive international and domestic prices, along with the end of federal supports that existed for the last few years, were the main factors driving a reduction in planted area.”
While Mexico’s wheat consumption is projected to be unchanged from 2017-18, the USDA forecasts a decrease in production to 2.9 million tonnes from 3.5 million tonnes. However, imports are forecast to rise to 5.6 million tonnes from 5.2 million tonnes.