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
Callahan is no stranger to agricultural trade and has been with the U.S. Trade Representative’s office since 2016.
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