Mexico: Rise in the price of a ton of corn 'puts tortilla factories in trouble'

Published 2022년 3월 21일

Tridge summary

The article reports a significant increase in the price of corn, with a ton now costing 600 pesos more than in February, a rise of 7.8%. This increase, attributed to the conflict between Russia and Ukraine, which are major corn producers, has led to concerns for tortilla makers in Mexico, the world's second-largest corn importer. The rise in corn prices is also linked to increased demand for US corn from countries that usually purchase from Ukraine. Furthermore, tortilla makers have accused some companies of hoarding corn, leading to speculative price hikes. Additionally, the article highlights the challenges tortilla factories face due to rising costs of gas, steel, and other inputs, with an annual inflation rate of 18.05% in February, nearing the historical maximum.

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

Original content

CESAR CANTU. THE FINANCIAL. The ton of corn rose 600 pesos in this fortnight of March, 7.8% more expensive than in February. In less than 30 days, the cost per ton of corn rose 600 pesos for the tortilla factories. On February 23, corn marketers offered a ton at 7,600 pesos. By March 16, the ton of corn was paid at 8,200 pesos. That is, the cost per ton rose 7.89 percent in less than a month. The recent spikes in the cost of corn have been extraordinary for tortilla makers. According to cost reports provided by the same marketers, the ton was paid at 7,400 pesos on January 14. By February 1, the figure rose to 7,550 pesos, and then to 7,600 pesos on February 23. That is, the escalation was 2.70 percent in 40 days. Between mid-January and March, the increase was 10.81 percent. The increases are due to market uproar caused by Russia's invasion of Ukraine, two of the world's leading corn producers and exporters. According to the United States Department of Agriculture (USDA), corn ...

Source: Inforural