Mexico Less Dependent on US Corn

As the North American Free Trade Agreement (NAFTA) renegotiations continue, forecasted Mexican corn production increases. The January World Agricultural Supply and Demand Estimates (WASDE) report originally estimated 2017/18 production at 26.2 million tonnes, but it has since revised that number upward to 26.8 million tonnes in the 8 February 2018 report. Mexican farmers welcome increased productivity as concerns loom over trade disruptions due to NAFTA renegotiations. Traditionally, Mexico has been dependent on the US for corn imports, and US farmers have benefited from trade with their number one corn trade partner. In 2016/17, Mexico purchased 24 percent of US corn exports followed by Japan importing 23 percent. While neither country wants to drastically reduce corn trade, increased capacity might make Mexico less reliant on US imports at a time of great trade uncertainty. As forecasted Mexican corn production for the 2017/18 marketing year fluctuates, Gro Intelligence provides subscribers with the data and analytics necessary to predict trade flows between the US and Mexico.