In this file:
· Idea of Mexico ditching imports of US corn, soy 'doesn't work' - Bunge
· Argentina eyes US corn market share in Mexico
Idea of Mexico ditching imports of US corn, soy 'doesn't work' - Bunge
by Mike Verdin, Agrimoney
16th Feb 2017
Bunge downplayed the potential for Mexico, switching crop imports from the US to South America, in a backlash against President Donald Trump, even as the agribusiness giant flagged the prospect ahead of a flood of Argentine and Brazil crop sales.
Soren Schroder, the Bunge chief executive, asked whether Mexico might source more of its crops South America, said that "I wouldn't say that's the case, at least not at this point.
North American origins "both in terms of corn and soybeans are obviously more than well supplied, with mounting surpluses", meaning they will "remain the cheapest" source of agricultural commodities for Mexico".
The comments follow a threat by Mexican senator Armando Rios Piter, who leads a congressional committee on foreign relations, to introduce a bill shifting corn import demand from the neighbouring US to Brazil and Argentina.
The proposal follows plans by Donald Trump, the new US president, to build a wall along the US border with Mexico, and impose taxes on imports from its southern neighbour.
'It doesn't work'
A switch of Mexico – a large importer of the likes of corn, soybeans and sorghum - to purchases from South America "frankly, all depends on price" Mr Schroder told investors...
'A lot of pricing ahead' ...
'Large safrinha crop' ...
Argentine soy forecast ...
Argentina eyes US corn market share in Mexico
by William Clarke, Agrimoney
15th Feb 2017
Mexican politicians are sabre rattling against the US agriculture sector, and it looks like Argentina is ready to fill the gap.
But analysts are sceptical as to whether a proposed corn import ban, which is to be debated this week, is a serious threat.
On Sunday the Mexican senator Armando Rios Piter, who leads a congressional committee on foreign relations, says he would introduce a bill this week, to shift corn import demand to Brazil and Argentina instead of the United States.
"I'm going to send a bill for the corn that we are buying in the Midwest and...change to Brazil or Argentina," Mr Rios Piter told CNN.
A lesson in unintended consequences
"Mexican politicians are toying with the idea of buying their corn from South America instead of the US to teach the US President a lesson in unintended consequences," said Tobin Gorey, at Commonwealth Bank of Australia.
But Terry Reilly, at Futures International, said "we believe the 'rogue one' senator introducing the bill will not succeed.
And it is true that so-far there are no signs that Mr Rios Piter has the support to pass the legislation, which would inevitably tighten South American grain markets, and increase prices.
Argentine ambition ...