Agricultural News
US Wheat Associates Accompany Mexican Millers on Tour of America's Breadbasket
Fri, 30 Sep 2016 16:46:34 CDT
A group of millers hailing from Mexico is touring through wheat country this week, visiting coops and wheat destinations, allowing them the chance to look at different areas where they could potentially source the grain they require to meet their needs. Accompanying these millers on the tour is Chad Weigand, assistant regional director with the US Wheat Associates, Mexico City office. Farm Director Ron Hays caught up with Weigand as the group passed through Oklahoma during the latter part of this week to gain some insight on the tour and those traveling.
"We started the trip earlier this week on Sunday in Omaha, Nebraska," Weigand said, detailing their migration from Omaha to Manhattan and Great Bend, Kansas and then into Oklahoma. "We have Grupo Trimex, which is the largest milling company in Mexico. 13 mills in Mexico scattered throughout the country."
Weigand explained that of the total 55-60 million bushels of wheat running on average through Trimex, about 50 percent of that is hard red winter wheat. He says traditionally, Mexico is the No. 2 importer of US wheat behind Japan overall, but in first place when it comes specifically to HRW; most of which is shipped by rail. And while Mexico has fair wheat production itself, their industry looks to the US for quality.
"That's always what millers are looking for," Weigand said. "They need protein for their bread making. Mexico, they do produce a good amount of wheat, but about 60-70 percent of that is durum wheat, and so it's not suitable for bread making. They're looking for hard wheats from the US for import."
Although the US remains on top in exports to the Mexican wheat market right now, Weigand says that the Russians have appeared on the scene in recent years. With Russia producing larger harvests, cheap freight weights and a weak ruble - Russian wheat has been priced much cheaper than HRW going into Mexico.
"Russia's been the main threat as far as HRW goes because it's a wheat that's similar in quality, not quite as strong in protein, but it's most similar to a HRW," Weigand said, "so that has displaced some HRW sales to the US in the past three years or so into Mexico."
Listen to Chad Weigand's full conversation with Ron Hays for a more complete look into the group's tour around the US Breadbasket, by clicking on the LISTEN BAR below.
Listen to Chad Weigand for a more complete look into the group's tour around the US Breadbasket
Listen to Chad Weigand for a more complete look into the group's tour around the US Breadbasket
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