Mexico tariff threats undermining corn rally
An analyst says the corn market has one less leg to stand
on now that Mexico faces new tariffs from the U.S.
Mark Schultz with Northstar Commodity in Minneapolis tells Brownfield the support provided by record planting delays is being undercut by more trade threats from President Trump.
“And you’re seeing other countries go to Brazil to fill their needs for the time being, and that would include Mexico who reportedly purchased last week alone upwards of 2.5 million metric tons of Brazilian corn.”
Mexico, the number one customer of U.S. corn, had not purchased corn from Brazil since January.
“The corn market does suffer, and yes the tariffs do have an impact on it. And it’s causing some problems, which is why the corn market will bounce around from time to time on weather only.”
Mexican trade officials are in Washington to discuss potential border solutions to avoid five percent tariffs President Trump says would go into effect Monday.