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Reuters reports that US food producers and shippers are rushing to speed up exports to Mexico after the Trump administration floated a 20% tax on Mexican imports and a planned presidential meeting was canceled. Exporters of corn, soybean meal and DDGS are trying to move product quickly.
Some are also seeking buyers in other countries such as Nicaragua.
The rush to ship before possible tariffs may temporarily support near-term export demand. However, a tariff on Mexican imports could cut long-term US sales of feed grains and meal.
reuters.comTom PolansekJan 31, 2017
voanews.comReutersFeb 1, 2017Not enough comparable past events yet for a historical read.
After 480 past neutral trade events, Corn moved a median +0.2% over 5 sessions (54% higher; middle half -1.1% to +1.6%), and +0.7% over 20.
After 224 past neutral trade events, Soybean Meal moved a median -0.2% over 5 sessions (43% higher; middle half -1.7% to +1.2%), and -0.2% over 20.
After 123 past bearish trade events, Lean Hogs moved a median -0.4% over 5 sessions (43% higher; middle half -2.9% to +2.0%), and -0.2% 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.
