(Jacob Bunge – Wall Street Journal)
Friction between the US and Mexico over trade is starting to cut into sales for US farmers and agricultural companies, adding uncertainty for an industry struggling with low commodity prices and excess supply.
Over the first four months of 2017, Mexican imports of US soya bean meal — used to feed poultry and livestock — dropped 15 per cent, the first decrease for the period in four years, according to data from the US Department of Agriculture. Shipments of US chicken meat fell 11 per cent, the biggest decline for the period since 2003.
US corn exports to Mexico declined 6 per cent. Mexico is the largest US export market for those commodities. The numbers reflect how Mexican companies are now increasingly buying grain on a short-term basis and purchasing more chicken from Brazil, troubling some industry officials and analysts. Click here to read more.