Mexico Grain Costs Rise While Exports Hold Steady

Mexico’s demand for U.S. corn, soybeans, and wheat remained mostly steady during the first quarter, despite higher transportation costs.

A towboat, known as a pusher, pushes barges full of cargo up the Mississippi River near downtown Baton Rouge, Louisiana, USA_Photo by Matt Gush via Adobe Stock_828872155.jpg

A towboat, known as a pusher, pushes barges full of cargo up the Mississippi River near downtown Baton Rouge, Louisiana.

Photo by Matt Gush via Adobe Stock

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
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Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

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