LUBBOCK, TX (RFD NEWS) — Shipping U.S. grain to Mexico became more expensive in the first quarter, but export volumes held mostly steady. USDA says landed costs rose from the previous quarter for corn, soybeans, and wheat moving to Mexico by both water and land routes.
Water-route costs increased because barge and truck rates moved higher. USDA says winter weather, ice, and low water on the Mississippi River system helped push barge rates higher from late January into early March.
Ocean freight was mixed quarter-to-quarter but higher year-over-year, supported by strong dry bulk movement and higher bunker fuel prices. Land-route transportation costs eased for soybeans and wheat, while corn rose slightly.
Mexico remained a major buyer. First-quarter U.S. corn exports to Mexico totaled 6.07 million metric tons, up 8 percent from a year ago, while soybeans slipped 5 percent and wheat rose 4 percent.
For producers, Mexico’s steady demand still depends on competitive freight.
Farm-Level Takeaway: Mexico remains a critical grain customer, but higher landed costs can affect U.S. competitiveness.
Tony St. James, RFD News Markets Specialist
USDA officials are increasing surveillance and sterile fly dispersal efforts as New World screwworm cases continue growing in Mexico near the Texas border.
Dave Walton with the American Soybean Association joins us to discuss China’s new ag purchase commitments, E15 policy concerns, and spring planting conditions.
Jenna Stanton with the United States Cattlemen’s Association joins us to discuss beef import concerns, cattle market signals, and the latest developments surrounding U.S. beef trade.
RealAg Radio Host Shaun Haney joins us to discuss the latest U.S.-China ag trade agreements, market reaction, and what producers should watch moving forward.
Dr. Derrell Peel says long-term price relief will depend more on rebuilding the U.S. cattle herd than increasing imports.
Industry leaders say producers could still benefit even with many operations already using reduced-tax off-road diesel.
