The Corn Economy

Jul 27, 2023

Key Issues: Trade

Author: Krista Swanson

Mexico is an important trade partner and leading export destination for U.S. corn. As Mexico’s domestic use of corn more than doubled over the past decade, the U.S. has helped meet the country's growing demand. Mexico issued a decree in February 2023 calling for the immediate ban on genetically modified (GM) corn in the masa or tortilla flour food sector. The Office of the U.S. Trade Representative (USTR) is in consultations with its Mexican counterparts over the issue. Continued and strengthened trade with Mexico is important to U.S. corn.   In this article, I’ll present a look at Mexico’s corn import needs and changes in trade flow patterns. First up, three takeaways from the analysis, followed by more detail.   Three Takeaways Mexico has made notable reductions in white corn imports from the United States in this marketing year. Through May, U.S. white corn exports to Mexico were 84.5% lower than the same period a year ago. And the U.S. total exports of white corn to...

Jul 5, 2023

Key Issues: Production

Author: Krista Swanson

Fourth of July fireworks weren’t the only eruptions in the nation over the past week – the corn market experienced an upheaval in reaction to unexpectedly high corn acres, weather pattern shifts, and stabilizing crop conditions. In the week from June 26 to July 3, the December 2023 corn futures contract dropped nearly a dollar landing at $4.93. Here is a look at the factors that led to this position and what we may expect ahead.   Analysis of Corn Acres, Weather, & Crop Conditions In their quarterly crop acreage report, USDA raised the 2023 corn planted area estimate to 94.1 million acres, a 2.1 million acre increase from the earlier estimate, and a 6% increase from 2022. The only two years in which corn-planted acres have exceeded the updated 2023 estimate are 2012 with 97.3 million acres and 2013 with 95.4 million acres. In 2016, the U.S. achieved a record corn production of 15.15 billion bushels with 94.0 million planted acres.   Ultimately this level of corn acres...