Global: Coarse grains markets, U.S. corn exports to Peru down again

Published 2021년 10월 15일

Tridge summary

The article highlights the dynamics of U.S. corn exports to Peru and Mexico, alongside Turkey's barley import activities. In Peru, the U.S. has had challenges maintaining market share, facing strong competition from Argentina, despite the U.S.-Peru Trade Promotion Agreement's advantages. The situation is influenced by global corn prices and Peru's variable levy on imports. In contrast, Mexico, a key corn importer, has seen a rebound in U.S. exports for the 2020/21 season, thanks to reduced competition from Brazil and logistical advantages. Meanwhile, Turkey, facing drought and high food inflation, has accelerated barley imports, supporting U.S. exports to the country. These developments show the complex interplay of various factors, including international agreements, market competition, domestic production challenges, and government policies, in the global trade of key agricultural commodities.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

U.S. exports of corn to Peru look poised to perform very similarly to last year, having lost substantial market share to Argentina in recent years despite trade advantages gained by the U.S.-Peru Trade Promotion Agreement (PTPA). The PTPA entered into force in 2009 and established a duty-free tariff rate quota (TRQ) for U.S. corn imports. The TRQ grew yearly and in-quota U.S. corn was excluded from a variable levy imposed under Peru’s price band system that is meant to support Peruvian producers when imports are priced lower than domestic corn. Non-U.S. origins still face this variable levy. This advantage helped the United States gain ground in Peru’s corn market and led to dominant market shares from 2013/14 through the first half of 2018/19. As most recently reported by FAS/Lima, higher global corn prices have reduced the variable levy on imported corn to zero. As a result, corn from the United States and Argentina, the other major supplier to Peru, have competed more directly ...

Source: Agfax