Video: Mexico Market Booms Due To Industry Growth, Global Market Factors

With a strong U.S. dollar and robust global production, U.S. corn exports have faced challenges in the early part of the 2015/2016 marketing year. However, Mexico remains a bright spot, having imported 8.5 million metric tons (335 million bushels) of U.S. corn as of Jan. 14 for this marketing year, 1.4 million tons (55.1 million bushels) more than last year at the same time.

“Mexico has been a long-time, very good customer of U.S. corn and feed grains,� said USGC Senior Director of Global Programs Cary Sifferath. “In addition, the market has been open to free trade with the United States and Canada for 20 years with the NAFTA [North American Free Trade Agreement] in place.�

While markets are known to shift and change, the Council is continuing to engage Mexican buyers and end-users to promote the United States as the long-term, reliable supplier of coarse grains.

“You have everything impacting exports from the strong U.S. dollar, which is creating a lot of competition for U.S. corn and other feed grains to a shift in shipments of U.S. sorghum to Mexico, which historically was our top market for this commodity,� Sifferath said.

“While these factors are impacting U.S. competitiveness in the global market, the growing feed sector in Mexico is increasing demand for corn, sorghum, barley and their co-products, which we are working to capitalize on.�

Click here to learn more about USGC’s work in Mexico from past Global Update articles.