US Agricultural Trade Developments - 2019/06/03
This first appeared in the May 31st, 2019 issue of our Weekly Market Letter. Please subscribe or take a free trial today.
US Agricultural Trade with Mexico
President Trump is making a move to impose a 5% tariff on all Mexican goods on June 10th (80% of their exports go to the US) and to increase the tariff by 5% each month to reach 25% by October until Mexico agrees to help the US on the crisis at the border. If Mexico retaliates, the grain and livestock markets will be vulnerable. Mexico is the top export destination for US pork, corn and wheat and the number-three destination for US beef. This uncertainty” is a bearish force for the markets. Both sides have until June 10th to resolve the issue, and it is difficult to determine which way this will go.
Last 10 Years
Source USDA/GATS. Includes: Soybeans, Cotton, Coarse Grains (ex. corn), Dairy Products, Pork & Pork Products, Feeds & Fodders NESOI, Wheat, Ethanol, Beef & Beef Products, Corn, Poultry Meat & Prods. (ex. eggs), Distillers Grains, Vegetable Oils NESOI, Pulses, Soybean meal, Live Animals, Eggs & Products, Animal Fats, Soybean Oil, Oilseeds NESOI, Other Bulk Commodities, Rice, Biodiesel & Blends > B30, Oilseed Meal/Cake (ex. soybean), Palm Oil, Rapeseed