KANSAS CITY — The Mexican wheat milling industry depends on U.S. wheat and is seeking to build stronger relationships with U.S. growers, said Jose Luis Fuente, president of CANIMOLT, Mexico’s wheat milling industry group, at the Wheat Quality Council’s annual meeting held Feb. 19 in Kansas City.
In the past, there have been concerns that U.S. producers may not deliver the wheat sold to Mexican millers, and that U.S. producers may not receive payment for wheat sold to Mexican millers, Mr. Fuente said. There also have been transportation issues, he said.
“We need to break the distrust between (U.S.) producers and Mexican millers and ensure the quality we seek,” he said. “I propose to work on a model similar to the (domestic) Mexican contract, which guarantees that we will all comply. We must promote that millers support the seeding and guarantee the purchase to American producers; and these ensure quality and its load capacity for direct shipments.”
Noting that the United States is by far the largest supplier of wheat to Mexico, Mr. Fuente stressed to the meeting attendees: “I need American wheat.” Mexico utilizes about 58% hard wheat, 31% soft wheat and 11% durum.
Mr. Fuente explained, at times through an interpreter, how Mexican mills price both domestic wheat and wheat imported from the United States taking into account futures prices, basis levels and other factors. CANIMOLT represents about 25 companies in Mexico’s milling industry.