Japan has bested Mexico’s place as the top buyer of American corn.
Sales of corn to Mexico through June are down 6.7 percent, or $1.04 billion, from a year ago, according to a new report from the U.S. Department of Agriculture (USDA).
The loss is offset by other sales, according to Bloomberg . Japan increased its purchases of American-grown corn more than 50 percent to $1.19 billion during that time period, making it the number one buyer of U.S. corn.
The value of American corn exports has risen 32 percent, further offsetting a loss in revenue from sales to Mexico.
In 2016, Mexico imported 12.75 million tons of U.S. corn.
The country reportedly began looking for other corn sellers earlier this year following comments from President Donald Trump and other officials regarding the North American Free Trade Agreement (NAFTA).
In late May, Mexican officials confirmed they made plans to import a record amount of yellow corn directly from buyers in Brazil .
The higher cost of Brazilian corn and shipping charges kept Mexico from buying the country’s corn in the past, but a new deal struck between Mexican companies and Brazil made purchases more attractive, according to Reuters.
The deals for two shipments of 30,000 tons each were only $3 to $5 per ton higher, Reuters reports.
A Mexican government official told Bloomberg the country may import up to five million tons of corn from Brazil in the medium-to-long-term.
Texas farmers are projected to grow 2.45 million acres of corn this year.
Much of that is typically sold into Mexico for livestock feed.
If Mexico does cut back on the amount of corn it buys from the U.S., that could prompt the U.S. to look for new markets.
It could also mean a greater American surplus if that corn doesn’t find a home.