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Industry groups say bans on GMO corn and glyphosate in Mexico would shrink food supplies. Mexico imported about 18 million tonnes of mostly GMO corn last season, around 40% of national consumption.
Nearly all available US, Argentine and Brazilian corn is GM, so satisfying demand would be nearly impossible if the decree is broadly applied.
Broad application of the decree would cut off most of Mexico's corn import sources, which is bearish for US export demand but could also tighten supply in Mexico. The net price effect depends on whether Mexico accepts a narrower interpretation.
reuters.comDavid Alire GarciaJan 15, 2021After 310 past bearish policy events, Corn moved a median +0.3% over 5 sessions (54% higher; middle half -1.4% to +1.9%), and +0.6% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
