Trade
The Ag Economists’ Monthly Monitor is a new survey of nearly 50 economists. Most ag economists agree the next 12 months could produce more financial pressure for agriculture, but their views vary depending on commodity.
Mercenary fighters will escape repercussions; deal details awaited; what’s next?
Mexico reached an agreement with food manufacturers to use only non-GMO corn in tortilla production across the country. The government says it plans to implement new import tariffs on white corn imports.
The U.S. and China have reportedly made “progress” and agreed to stabilize their relationship, but no major breakthroughs were outlined during the two-day meeting between U.S. and China high-ranking officials.
Over the 29 years of free trade, U.S. ag exports to Mexico increased both in terms of volume and value, although there were some years where growth was not positive.
Sluggish exports continue to be the main theme in the grain markets with USDA cutting both old and new crop ending stocks. Arlan Suderman of StoneX Group says the bigger story moving forward might be soft corn demand.
Mexico claims because it is self-sufficient in GMO corn for food, it has not violated any trade agreements. Given the firm stances of both countries, it appears this situation will lead to a USMCA dispute settlement.
China’s exports to Russia reached a record high in April, amounting to $9.6 billion.
Last week was full of both bullish and bearish news for the wheat market. Arlan Suderman of Stone X Group says there are still several things that could spark momentum in the wheat market.
The Ukraine Black Sea grain deal has been extended for two more months, one day before Russia could have quit the pact over obstacles to its grain and fertilizer exports.