Corn no longer seems to be in jeopardy as Mexico and the U.S. seem to have reached an agreement on NAFTA. Corn was theoretically at risk if trade negotiations failed, as Mexico is the largest U.S. corn importer. Mexico imported 14.7 million metric tons during 2017, which represents approximately 24 percent of all U.S. corn exports. Losing Mexico as a market would’ve had a great impact on corn futures.

Some of the changes in the new deal include: 75 percent of auto content to be made in NAFTA region, up from 62.5 percent, and 40 to 45 percent of auto parts should be made by workers earning at least $16 per hour. Canada has not yet agreed to the proposed changes to NAFTA.

U.S. corn exports

Source: USDA
Posted by: Information Services
Our Information Services team assists our clients with understanding commodity and ingredient market dynamics. Using our extensive database of intelligence, we also produce regular commodity and commercial market publications covering supply and demand fundamentals, news alerts on events that shape the markets, and resource guides to give you a complete picture of the industries we monitor.