Recent corn sales to Mexico are a bright spot in the generally sluggish U.S. grain export picture, making that country the top destination for U.S. corn exports in the first two months of the 2015/2016 marketing year.

In its Dec. 10 export sales report, the U.S. Department of Agriculture (USDA) reported that buyers in the country have purchased more than 7.3 million metric tons (287.4 million bushels) of U.S. corn so far this marketing year. By comparison, the United States sold almost 18.7 million tons (736.2 million bushels) of corn overseas during the same time frame this year.

“As of early December, Mexican buyers had imported 1.3 million tons (51.2 million bushels) more U.S. corn than they did during the same period last year. With this 22 percent increase, we are just seeing the beginning of Mexico’s import program,” said Marri Carrow, the U.S. Grains Council’s regional director of the Western Hemisphere.

While the news from the United States’ southern neighbor is certainly positive, sales to other countries in Latin America have backed off due to higher global grain supplies, lower demand, economic uncertainty and a stronger U.S. dollar.

“The strong U.S. dollar somewhat offsets lower-priced U.S. corn and, at the same time, weaker currencies in South America make exports from Brazil and Argentina more competitive,” Carrow said.

Still, she expects countries like Peru and Colombia to pick up their purchases of U.S. corn starting in January thanks to favorable trade deals with those markets.

“Essentially, they’ve backed off purchases of U.S. grain in part because duty-free trade quotas negotiated under their free trade agreements with the United States were filled months ago and won’t reset until January,” Carrow explained. “At that point, U.S. corn will again have an advantage, and hopefully sales will pick up.”

A year ago, the tariff rate quota (TRQ) in Peru expired early in January because sales were so strong. In Colombia, the TRQ expired before half the marketing year was up.

“Trade agreements with both countries raise the TRQ 5 percent annually until it is eventually phased out, so that may translate into more sales in the front half of the year, and ideally both countries will remain strong buyers even after the TRQ runs out,” Carrow said. “This is why trade agreements are so important. Over the long term, a more level playing field means better opportunities for the United States to compete.”

Ultimately, as the top global producer and most reliable supplier, Latin American buyers will likely turn to U.S. corn to fulfill their needs.

“The U.S. export system is reliable, transparent and consistently offers high quality, all things Latin American buyers value,” Carrow said. “The Council will continue promoting those key points while working to grow and support our Latin American markets.”