Mexican importers, usually buying their corn in the United States, amid trade disputes between Washington and Mexico City, ordered a 35,000-ton cargo of corn in Brazil.
Brazilian broker and consultant INTL FCStone said on Wednesday, June 5, that according to port data, the cargo will be loaded in the northern port of Santarem and should be shipped on June 22.
The deal is at a time when Mexican authorities are negotiating with Washington to prevent the introduction of US tariffs on Mexican goods from next week. Mexico is the main destination for US corn exports.
“There is an export of Brazilian corn to Mexico, and all this is connected with possible US tariffs. It could be a signal from Mexico for the United States to show that they can get corn elsewhere, ”said Lucas Pereira, a cereal analyst with FCStone in Brazil, told Reuters.
In the United States, it is a difficult start for a new grain crop with long delays in planting both corn and soybeans due to excessive rain. This situation may reduce future US corn supplies.
According to the Brazilian Ministry of Agriculture, this will be the first export delivery of corn from Brazil to Mexico since January, when 33,000 tons of product were delivered.
The deal will also indicate that Brazilian exporters are setting attractive prices for local grain, as the country is harvesting a record crop of 100 million tons.
