In this file:
· Mexico buys Brazil corn cargo amid trade spat with U.S., says broker
Mexican importers, who usually buy their corn from the United States, have booked a 35,000-tonne corn cargo from Brazil, amid a trade spat between Washington and Mexico City…
· Possible Mexican retaliatory tariff list excludes U.S. corn: sources
… One source said the president’s office had not made a decision on retaliatory tariffs…
· ADM ships Brazil corn to Smithfield Foods in the United States amid heavy rains
… Smithfield, a subsidiary of China’s WH Group, did not return a request for comment…
Mexico buys Brazil corn cargo amid trade spat with U.S., says broker
Roberto Samora, Reuters
June 5, 2019
SAO PAULO, June 5 (Reuters) - Mexican importers, who usually buy their corn from the United States, have booked a 35,000-tonne corn cargo from Brazil, amid a trade spat between Washington and Mexico City.
Brazilian broker and consultancy INTL FCStone said on Wednesday the cargo would be loaded at the northern port of Santarém and scheduled to depart on June 22, according to port line-up data.
The deal comes as Mexican authorities are holding last minute talks with Washington to stave off the imposition of U.S. tariffs on Mexican goods from next week. Mexico is the main destination for U.S. corn exports.
“It is not common to see Brazilian corn exports to Mexico, and there is all this issue with possible U.S. tariffs,” said Lucas Pereira, an FCStone grains analyst in Brazil.
“It might be a signal from Mexico to show that they can source corn elsewhere,” he told Reuters.
The United States is having a troubled start to the new grain crop, with large planting delays for both corn and soybeans due to excessive rains. That situation could cut future U.S. corn supply.
This would be the first corn export sale from Brazil to Mexico since a cargo of 33,000 tonnes in January, according to Brazil’s Agriculture Ministry.
Pereira said the corn heading to Mexico is probably from Brazil’s top grain state of Mato Grosso. Part of the state’s production is sold overseas through northern ports, such as Santarém, located in Pará state.
Mexico tapped the Brazilian corn market in 2017 and 2018 when the country was negotiating a renewal of the NAFTA trade deal...
Possible Mexican retaliatory tariff list excludes U.S. corn: sources
Reporting by Frank Jack Daniel, Dave Graham and Anthony Esposito; Editing by Richard Chang and Peter Cooney, Reuters
June 5, 2019
MEXICO CITY (Reuters) - Mexico has prepared a list of U.S. products that could be hit in retaliation for possible Trump administration tariffs, with a focus on Republican-leaning agricultural states but excluding corn, one of Mexico’s biggest imports, officials said on Wednesday
U.S. President Donald Trump has pledged to apply a first round of tariffs on all Mexican imports next week if President Andres Manuel Lopez Obrador’s government does not stem the flow of mostly Central American migrants seeking entry to the United States.
Mexican officials met with their U.S. counterparts for talks in Washington on Wednesday aimed at reaching a deal to stave off the imposition of U.S. tariffs on Mexican goods.
Four government officials familiar with the situation, speaking on condition of anonymity because of the sensitivity of the matter, said the list, which three of the sources said was prepared by the economy ministry, was with Lopez Obrador’s office.
One source said the president’s office had not made a decision on retaliatory tariffs.
The products targeted are similar to those lined up in response to Trump’s steel and aluminum tariffs last year, and were principally tailored toward hitting the U.S. president’s electoral base, according to one of the sources.
That meant focusing on states that voted for Trump in 2016 where agriculture plays a major role in the local economy, as well as several industrial states, including Michigan, Pennsylvania and Ohio, the source added.
The list submitted to the president’s office excludes U.S. corn, two of the sources said. That could change in due course, one of the sources noted.
Mexico’s growing livestock industry relies on millions of tonnes of U.S.-grown yellow corn annually and industry experts say it would be extremely hard to quickly substitute the American imports with corn from other nations...
ADM ships Brazil corn to Smithfield Foods in the United States amid heavy rains
Ana Mano & Roberto Samora, Reuters
June 4, 2019
SAO PAULO, June 4 (Reuters) - Archer Daniels Midland Co and other grain traders are selling Brazilian corn to Smithfield Foods Inc in the United States, where wet weather has reduced plantings, said two sources with knowledge of the matter.
The sources, who requested anonymity to discuss sensitive market information, said Smithfield owns port facilities on the U.S. east coast and sometimes buys corn abroad because of the cost of shipping grains from the domestic corn belt.
“We are just finding a destination for Brazil corn and supplying those who know there will be a shortage ... Just being faster and nothing else,” said a third source close to ADM.
ADM declined to comment. Smithfield, a subsidiary of China’s WH Group, did not return a request for comment.
The sources did not give the names of other traders shipping Brazilian corn.
One source said Smithfield Foods likely ordered between five and 10 corn shipments from Brazil, which are expected to be loaded onto ships between September and January.
The other source said Paraguay and Argentina are also shipping corn to the United States, with around 1 million tonnes now under contract for shipment from South America to the United States.
A record delay in corn planting in the United States, the world’s largest producer and exporter, is likely to drive demand for Brazilian corn this season as U.S. farmers struggle with heavy rains, according to analysts and market data.
Only 67% of U.S. corn was planted by June 2, well behind the five-year average of 96%, the U.S. Department of Agriculture said.
Brazil’s government forecast corn exports would grow by 25% this season...