U.S. corn shipments to Mexico have slipped in recent months, and Mexico in no longer the number one buyer of American corn.
It may be a sign that trade tensions are forcing the country to look elsewhere for corn in case the U.S. is no longer a reliable supplier, a Bloomberg article reads.
Sales through May of this year were down almost seven percent from last year, coming in at $1.04 billion. Japan has become the biggest importer of U.S. corn after boosting its purchases by 53 percent, totaling $1.19 billion. Mexico began looking for other corn suppliers after President Donald Trump?s criticism, which began on the campaign trail when he said Mexico had taken advantage of the U.S. through the North American Free Trade Agreement.
Mexican corn purchases are picking up as the peso rebounds from a record low against the dollar in January. Lesly McNitt, Public Policy Director for the National Corn Growers Association, says the sluggish pace of U.S. corn shipments to Mexico shows the trade relationship may be at risk. ?They?re preparing a Plan B,? McNitt told Bloomberg. Mexico has initiated discussions with suppliers in Argentina and Brazil.
