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Mexico is ready to hit the U.S. where it hurts: Corn

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Haly

One day I realized that sadness is just another word for not enough coffee.
So, for those knowledgeable about the corn industry, aside from corn itself, corn oil and corn syrup, what other products rely heavily on corn?
 

theWB27

Member
The threat matters more than the prices. I hope it pisses people off enough to get them even more agitated at trump.

Trump is deporting their workers and now possibly this. Yea... that will hurt.

I live in Indiana. Big deal.
 
So, for those knowledgeable about the corn industry, aside from corn itself, corn oil and corn syrup, what other products rely heavily on corn?

tons of stuff from pharmaceuticals like pain killers to table sugars, to made foods and condiments

also ethanol and chemicals

Also more odd stuff like

Rubber Tyers, toothpaste, Paint & Varnish.

Paper Products* (*Paper products use raw starch in the manufacturing process)
 

SpecX

Member
So, for those knowledgeable about the corn industry, aside from corn itself, corn oil and corn syrup, what other products rely heavily on corn?

Corn is literally in almost everything. Image I got from fortune.com

corn_industry_graphic.jpg
 

Africanus

Member
H-hey guys, we here in Illinois are nice and democratic (ignore most counties not near Chicago). We also have corn! Lots of corn.

Please show mercy.
 

SpecX

Member
I get the feeling he's going to be just fine and it's the rest of us who are going to pay the ultimate price.

Agreed, I just hope these impacts are not long lived for these workers as it is jobs on the line and hopefully it will be an eye opener for these voters to flip Republican lead positions
 

Ether_Snake

安安安安安安安安安安安安安安安
Trump's whining helped lowering Mexico's peso, making their exports more competitive, and he gave them plenty of time to plan how to diversify their exports or counter his plans.

Truly a master negotiator !
 

Karl2177

Member
Iowa is most definitely going to be impacted negatively, but I wonder how much this is going to affect Western Nebraska. On one hand they're a large exporter of corn, but at the same time a lot of local governments are looking to change crops that are less water dependant. The Ogallala aquifer is being used up at an alarming rate and it isn't sustainable for them to continue growing corn at the rate they are.
 
  • This won't pass in Mexico.
  • If it does, it would just make corn prohibitively expensive in Mexico.
  • It would have virtually no affect on American corn production, and even if it did, the American government would likely just buy corn to keep the price artificially high like it did throughout most of the Obama Administration. Any corn reserves would then be used to sell to Mexico when the market stabilizes (assuming that this would disrupt the market, which it probably wouldn't).

What are the cost differences associated with buying from Brazil vs USA? You seem pretty confident in your assessment so I assume you know.

I agree with points one and three for the most part though
 

Tugatrix

Member
Somewhere in the deep rural us a trump voter, who is also a corn farmer will get a present for his hate against Mexicans.
 
I understand why they're doing this, but Mexico has a lot more to lose...I don't think this will end well for them.

Dude, your president wants us to pay for a $20 billion dollar wall. I can't see an option thats worse than paying for something as stupid and useless as that. If we don't do anything we've already lost.
 

Haly

One day I realized that sadness is just another word for not enough coffee.
Corn is literally in almost everything. Image I got from fortune.com

tons of stuff from pharmaceuticals like pain killers to table sugars, to made foods and condiments

Thank you both. Honestly this sounds like a good thing. Outside of pharmaceuticals, fabrics and hygiene products, less of all the other stuff is better for the population's health in the long term.

RIP trump states though.
 

Chumly

Member
  • This won't pass in Mexico.
  • If it does, it would just make corn prohibitively expensive in Mexico.
  • It would have virtually no affect on American corn production, and even if it did, the American government would likely just buy corn to keep the price artificially high like it did throughout most of the Obama Administration. Any corn reserves would then be used to sell to Mexico when the market stabilizes (assuming that this would disrupt the market, which it probably wouldn't).
So Mexico would just bend over for Donald trump and get screwed? You actually think that's going to happen? Trump will institute tariffs with absolutely no repercussions?

I doubt it would make corn prohibitively expensive in Mexico. Yes the prices would increase but if trump is already devastating the Mexican exconomy they are going to demand tic for tac tactics.
 
What are the cost differences associated with buying from Brazil vs USA? You seem pretty confident in your assessment so I assume you know.

To be fair, I'm no more confident than the other 190 posts in this thread that are saying "Yeah! Go Mexico! That'll show Trump!"

I don't know the the real costs, but I'm assuming that as the US is a major corn producer and has a modernized, mechanized agricultural sector, it can price itself lower for a poor to meet the majority of it's corn need than a country like Brazil can. I'm just assuming that the price of American corn is likely less than the price of Brazilian corn based on precedent and history.

So Mexico would just bend over for Donald trump and get screwed? You actually think that's going to happen? Trump will institute tariffs with absolutely no repercussions?

I doubt it would make corn prohibitively expensive in Mexico. Yes the prices would increase but if trump is already devastating the Mexican exconomy they are going to demand tic for tac tactics.

"So Mexico would just bend over for Trump," well no, but ultimately, the buck stops somewhere. And the majority of posts in this thread as acting as if this isn't one Mexican senator, but rather, some mass movement in Mexico to shift it's corn purchases to another country, and that your average Mexican (or Mexican senator) is more concerned with sticking it to Trump than they are with their own bottom line.

"Mexican senator Armando Rios Piter, who leads a congressional committee on foreign relations, says he will introduce a bill this week"

ALso, it seems like the majority of posts in this thread are rooting for a trade war. I fucking hate Trump, but I also don't throw my hands up in salubrious joy at the threat of trade wars. But then again, I was very against the Bernie-Trump anti-trade agreements populist propaganda during this election, and I think a solid portion of Gaf has been rooting for trade wars since it became politically beneficial to do so.
 

riotous

Banned
Do it. We need to get slapped hard.

Wouldn't a better solution be that the Trump admin is forced to backtrack on their anti-Mexican immigration stances, the wall, etc.?

As an American I'm not going to sit around and wish financial distress on other Americans as some pay back for their voting habits. Wouldn't this put a lot of migrant workers out of a job too, not just "white Trump voters"?
 

LiK

Member
I'm all for this cuz fuck Trump. Get more supporters who are farmers to figure out Trump is a fool.
 

carlsojo

Member
This is fucking awful. Farmers aren't exactly in a good place as it is as far as I know. These people are going to suffer.
 

Eila

Member
Trump's whining helped lowering Mexico's peso, making their exports more competitive, and he gave them plenty of time to plan how to diversify their exports or counter his plans.

Truly a master negotiator !

Lol I don't think Mexico is in an enviable position in any way.
 
So, for those knowledgeable about the corn industry, aside from corn itself, corn oil and corn syrup, what other products rely heavily on corn?

Ethanol uses up a huge chunk of our corn supply.

H-hey guys, we here in Illinois are nice and democratic (ignore most counties not near Chicago). We also have corn! Lots of corn.

Please show mercy.

We also grow a ton of soybeans and pumpkins.

By the way, Mexico is the second largest importer of our corn, which represents 3% of total corn sales in the US. 3% may not seem like much, but it can add up real quick.
 

Hale-XF11

Member
I can't help but think of the farmer whose farm I drive by during work every day with a sign outside his house near the road that reads "Hillary is a crook!"

That guy asked for this.
 
To be fair, I'm no more confident than the other 190 posts in this thread that are saying "Yeah! Go Mexico! That'll show Trump!"

I don't know the the real costs, but I'm assuming that as the US is a major corn producer and has a modernized, mechanized agricultural sector, it can price itself lower for a poor to meet the majority of it's corn need than a country like Brazil can. I'm just assuming that the price of American corn is likely less than the price of Brazilian corn based on precedent and history.

It is, and it's cheaper because of subsidies too. The question is how much. Mexico has to be prepared to retaliate though and this is the way. I would imagine they've done comparisons and it's probably cheaper than the 20% tariff being floated.
 

Lonely1

Unconfirmed Member
What are the cost differences associated with buying from Brazil vs USA? You seem pretty confident in your assessment so I assume you know.

I agree with points one and three for the most part though

  • This won't pass in Mexico.
  • If it does, it would just make corn prohibitively expensive in Mexico.
  • It would have virtually no affect on American corn production, and even if it did, the American government would likely just buy corn to keep the price artificially high like it did throughout most of the Obama Administration. Any corn reserves would then be used to sell to Mexico when the market stabilizes (assuming that this would disrupt the market, which it probably wouldn't).

This is not just comming out of a Mexican Senator. Negotations have been in place for a time, and yes, it would pass Mexican congress:

Throughout last year, Mexico has already sought to negotiate several trade agreements with both South American countries, but nothing concrete has been announced yet. According to Mike Zuzolo, president of Global Analytics & Consulting, there already has been market anxiety about what is going to happen on this issue and with cattle. Feed-meal traders from the south of the border are already trying to anticipate major decisions.

“It would all depend on the size of the second corn crop in Brazil. If Brazil has sufficient volume, it would be able to sell corn from $25 to $35 per ton (into Mexico), and there will be significant changes in the market. It’s all about the weather in Mato Grosso in the coming months,” Zuzolo predicted in a call with Agriculture.com.

Source.
 
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