Manhattan, KS - “Mexico was the top export destination for corn, wheat and rice by volume in 2018 making it an excellent market for U.S. grain exports,” says Guy H. Allen, senior agricultural economist for Kansas State University’s IGP Institute.
To help those purchasing grain in Mexico have a better understanding of risk management, trading and hedging principles, Allen led a two-day training for 11 buyers that were part of the U.S. Grains Council trade team.
Among the topics discussed were the principles of risk management, contract arbitration, futures and derivatives, options, world grain supply and demand market issues, basis trading and hedging, price risk and options strategies for end users.
Allen says the course participants were an engaged group and appreciated the objective approach to his teaching style.
He also sees this audience as key influencers in the marketplace.
“Large corn crops forecast for Brazil and Argentina will provide stiff competition for higher priced U.S. corn in the coming 2019-2020 marketing year,” Allen says.
He shares that corn is the largest crop in Mexico in terms of production and consumption.
When looking at the wheat market, Allen says Mexico’s total imports are expected to grow slightly in the upcoming year, while sorghum imports are forecasted to remain stable.
“Understanding the markets is critical to my role at the IGP Institute so that I can deliver the most accurate information possible,” Allen says.
To learn more about the Mexico county market profile, please refer to the attached USDA report.
This training is an example of a customized offering featured in the grain purchasing and risk management curriculum.
In addition, the IGP Institute offers trainings in the areas of flour milling and grain processing, and feed manufacturing and grain quality management.
For more information, please contact Lisa Moser at lmoser@ksu.edu.