Mexico potential U.S. corn market
US - Corn growers from Illinois, Iowa and Nebraska are currently meeting in Guadalajara, Mexico, with Mexican corn buyers for a series of merging markets workshops.The event focuses on bringing together potential buyers and sellers and building relationships between the two groups.
“We are here trying to merchandise and move grain from all three areas,” said Darrel McAlexander, a corn grower from Southwest Iowa in an interview with Brownfield Monday.
“Whenever corn leaves the United States or when it’s consumed, if it comes out of Iowa, Nebraska or Illinois, or wherever it comes, whenever that bushel of corn is gone that increases or helps promote the price of corn in the rest of the states.”
Mexico is a very strong potential market for U.S. corn, says McAlexander, speaking from the meeting in Mexico. From its combination of expanding livestock, swine confinement units and large poultry industry, Mexico is going to need a lot of corn from the United States in the future, according to McAlexander.
Mexican buyers must have cupos, coupons issued by the Mexican government, after an individual has used a set amount of domestic grain. These cupos allow buyers to import grain from the United States, say McAlexander.
Source: Brownfield Network
20 June 2006
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