Mexico’s demand for US grain set to grow

Mexico’s demand for US corn and soybeans is expected to continue rising due to increasing consumption of meat products, which is driving higher imports of feed ingredients. This is stated in a report by Bree Baatz, a grain and oilseed analyst at Terrain.

Mexico is already the largest agricultural export market for the United States. In 2024, the value of US agricultural exports to Mexico exceeded $30 billion, nearly 7% more than a year earlier. US products account for about 75% of Mexico’s total agricultural imports, highlighting the deep level of trade integration between the two countries.

According to the analyst, Mexico will remain a key long-term growth market for US grain and oilseed exports thanks to population growth, economic expansion and the US logistical advantage over competitors such as Brazil. Over the past 25 years, Mexico’s total meat consumption has nearly doubled, significantly increasing demand for animal feed.

In the 2024/25 marketing year, Mexico was the top destination for US corn and DDGS exports and the second-largest market for US soybeans and soymeal. The US share of Mexico’s imports reached 100% for DDGS and soymeal, around 90% for corn and more than 80% for soybeans, making Mexico a more strategically important market than others, including China.

At the same time, trade risks remain due to Mexico’s policy on genetically modified corn and growing competition from Brazil and Canada. Nevertheless, analysts believe that Mexico will remain a key market for US grains and oilseeds in the coming decades thanks to geographic proximity, strong rail connectivity and stable long-term demand.

Tags: corn, soybean, USA, Mexico