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Mexico will allow a 200,000-tonne beef quota and a 150,000-tonne rice quota from all countries to enter tariff-free until the end of 2017. The move removes the advantage US beef previously had over non-NAFTA suppliers, which had faced 25% tariffs on frozen beef.
Exporters see it as a possible hedge against US-Mexico trade retaliation.
Lower-cost beef from other suppliers can take share from US beef in Mexico, which is the largest export market for US ranchers, and cheaper rice imports add supply to the global rice market.
farmersweekly.co.nzNigel StirlingMar 15, 2017After 121 past bearish trade events, Live Cattle moved a median -0.6% over 5 sessions (40% higher; middle half -1.6% to +0.8%), and -0.3% over 20.
After 141 past bearish trade events, Rough Rice moved a median +0.6% over 5 sessions (57% higher; middle half -2.3% to +2.4%), 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.
