There has been a big development in President Trump’s deportation plan, and it could sent ripples through the corn markets today.
Over the weekend, Colombia’s president released several flights with illegal migrants on board out of the United States. They argued migrants were not criminals, and the U.S. violated their rights.
President Trump responded with plans for 25 percent tariffs on the country, a major receiver of U.S. ag supplies, and those tariffs would increase to 50 percent after a week. However, Colombia’s president said he would accept the flights, so the tariffs have been called off.
Colombia is a major trade partner with the U.S. as they import more than a billion dollars of U.S. corn each year, making them the fourth largest export market. They are also a big provider of coffee and fresh cut flowers to the U.S.
A free trade agreement has been in place between the U.S. and Colombia since 2012, but the U.S. has the right to take action if there is a national security threat.
WTO gauges point to agricultural raw materials trade growing more slowly than overall goods, reinforcing the need to manage export risk and monitor policy shifts closely.
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Improved export prospects and higher crop prices strengthened future expectations despite continued caution about spending.
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While the agriculture industry hoped details on proposed “bridge” payments for farmers would be released this week, Ag Secretary Brook Rollins said the USDA is still working with the White House on the finer points.
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China’s renewed purchases signal improving sorghum demand at a time when export markets are otherwise uneven. Meanwhile, agriculture groups across the U.S, Canada, and Mexico want to protect close trade relations.
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Pressure on grain storage capacity and stronger export positioning are pushing more grain onto railroads, highways, and river systems as logistics become a key bottleneck this fall.
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