Financing grain imports

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Mexico Trade Corridor · Corridor guide · D. Mexican importers buying from the US

Mexico buys almost all its imported corn from the United States, and its mills pay for each cargo before they sell the feed, starch or flour made from it. This guide covers how those cargoes are paid for, how buyers handle the peso-dollar risk and where cash is tied up.

Published October 23, 2026 · Facts as of October 23, 2026 · 9 min read · Sources listed at the end · Rules as of October 23, 2026

Facts as of October 23, 2026. This page states the facts as they stood on that date. Tariffs, rules and figures may have changed since publication. Tariffs and trade policy change often, so we review these pages every month and update them.

US$5.7bnMexico's corn imports from the US in 2025, as reported by Mexico. US data shows US$6.0bn ¹

26.8m tUSDA forecast of Mexican corn imports in 2026-27, in million tonnes, with the US share over 99% ²

Sep 1Start of the US corn marketing year, which shapes when Mexican buyers contract ⁵

Sep 30, 2026GSM-102 application deadline shown on USDA's program page. It has passed, and no new cycle is confirmed ⁷

What is it?

Grain import finance pays for US corn and other grain, the freight to Mexico and the stock a buyer holds until its own customers pay. Mexico reported US$5.7 billion of corn imports from the US in 2025, and US data shows US$6.0 billion ¹. Feed mills, starch makers and the masa and tortilla industry are the main buyers ³.

Why does it matter?

Mexico grows less corn than it uses. USDA forecasts 2026-27 production of 24.5 million tonnes against consumption of 52.5 million tonnes ². As general practice, contracts are priced in US dollars while buyers sell in pesos, so each cargo carries currency risk as well as credit risk.

How does it work?

Corn moves by rail and truck to border crossings, or by barge and ship to Veracruz ⁴. As general practice, sellers use cash against documents or letters of credit for new buyers, and open account with credit insurance for repeat buyers. The buyer repays from sales of feed, starch or flour.

In this guide

1. Who buys US grain in Mexico, and why do they need finance?
2. How are US grain sales to Mexican buyers paid?
3. How does grain move, and when is it paid?
4. How do buyers handle the peso-dollar risk?
5. Where is cash tied up, and which finance fits?
6. Can USDA's GSM-102 program help a Mexican buyer now?
7. What should grain importers and lenders watch next?

01Who buys US grain in Mexico, and why do they need finance?

The buyers are poultry, pork and cattle feed mills, starch makers, and the masa and tortilla industry ³. Poultry feed is a key driver of yellow corn imports, while tortillas are made with about 82% white corn flour and 18% yellow ³. US exporters and trading houses sell to them. Cargill, for example, has traded grain in Mexico since 1965 and runs a grain and oilseeds site at the port of Veracruz ⁶.

Mexico relies on these imports. USDA forecasts Mexican corn imports of 26.8 million tonnes in 2026-27, with the US share over 99% ². USDA also reported in March 2025 that Mexican production ran about 10% below its 10-year average, partly because of farmer debt and limited financing ³. Our corn brief has the trade data from both sides.

A buyer pays for a cargo before it is paid for the feed or flour made from it, and it often holds stock in between. That gap is the working capital that grain finance funds.

02How are US grain sales to Mexican buyers paid?

We found no public source on standard payment terms for US corn sales to Mexican mills. The options below are general practice, and each seller sets its own terms.

A new buyer is often asked to pay cash against documents or to open a letter of credit, so the US seller is paid when it presents the shipping documents. A buyer with a track record may move to open account, with the seller covering its risk through trade credit insurance. Large trading houses may also give supplier credit to buyers they know.

The Trade Finance Guide explains how agricultural commodity trade is financed. Our guide to payment terms in the corridor compares the same options across all goods.

Compare

Payment options for a US grain cargo

General practice. No public source sets standard terms for US corn sales to Mexican buyers.

Option	Often used for	Where the risk sits
Cash against documents	Buyers with some history with the seller	The buyer pays before it receives the documents that release the grain
Letter of credit	New buyers and large cargoes	The buyer's bank pays when the documents comply; the buyer needs a credit line at its bank
Open account with credit insurance	Repeat buyers	The seller carries the risk and insures most of it
Supplier credit from a trader	Buyers with a trading house relationship	The trader carries the risk and funds it on its own balance sheet

03How does grain move, and when is it paid?

Corn moves by rail or truck to border crossings at El Paso, Laredo and Eagle Pass, or by barge and then ocean vessel to Veracruz ⁴. Our guide to border crossings covers each route. The sale contract sets who pays for each leg and when the risk passes, usually through an Incoterms rule.

Timing follows the US marketing year, which starts on September 1 ⁵. Mexican buyers were active early in 2025/26 and took about half of all US corn sales in the week ending September 18, 2025 ⁵. As general practice, a buyer's cash needs peak when imports are heavy and local harvests are light.

1. Contract signedA mill or food maker buys from a US exporter or trading house, priced in US dollars, as general practice.
2. Grain loadedRail or truck to El Paso, Laredo or Eagle Pass, or barge and ship to Veracruz ⁴.
3. Seller paidAgainst documents, under a letter of credit or later on open account, as the contract sets.
4. Customs clearedThe broker files the customs declaration and pays any taxes and duty due.
5. Stock used and soldThe buyer stores the grain, makes feed, starch or flour, and repays from sales.

US corn reaches Mexico by rail and truck through El Paso, Laredo and Eagle Pass, and by barge and ship to Veracruz, according to USDA.

04How do buyers handle the peso-dollar risk?

As general practice, US corn contracts are priced in US dollars, while Mexican buyers sell feed, starch and tortillas in pesos. If the peso weakens between the contract and the payment, an unhedged cargo costs more in pesos. This is foreign exchange risk. As general practice, buyers fix or cap it with a forward contract or options, arranged when the cargo price is fixed.

A lender looks at the grain price and the exchange rate together, because both change the peso cost of the cargo. Our guide to paying in dollars and earning in pesos explains the hedging tools available in Mexico.

The checklist below covers the points a buyer settles before a cargo is financed. Two of them, biosafety rules and the import duty, still need checking for each contract ^8,9.

Checklist

Before a grain cargo is financed

• Signed contractPrice, quantity, Incoterms rule and payment terms agreed with the US seller.
• Currency planA decision on whether to fix the peso cost with a forward or options when the price is fixed.
• Biosafety statusImports of GM corn grain remained allowed as of March 2025. Check for new rules ⁸.
• Duty confirmedMexico announced tariffs on white corn imports in 2023, but the rate is unconfirmed. Ask your broker for the current rate ⁹.
• Storage and securityWhere the grain will be held, and whether a warehouse receipt can secure the finance.

Items without a citation are general practice. Each lender sets its own conditions.

05Where is cash tied up, and which finance fits?

Cash leaves the buyer first when the cargo is paid, then at customs. It stays tied up while grain sits in storage and while the buyer's own customers take time to pay. This order is general practice. Our guide to landed cost covers the taxes and fees due at the border.

Grain in storage can secure finance. As general practice, a lender funds stored grain against a warehouse receipt issued by the warehouse that holds it. Traders and large buyers with many cargoes can use structured commodity finance, where the loan is repaid from the sale of the grain. US exporters can also borrow before shipment to buy and ship the grain, which lets them offer credit terms to Mexican buyers.

Where the cash goes

From grain contract to repayment

1. Contract
   Price fixedThe buyer agrees the dollar price and decides on a currency hedge.
2. Shipment
   Cargo paidThe seller is paid against documents, under a letter of credit or later on open account.
3. Border
   Customs clearedThe broker files the declaration and pays any taxes and duty due.
4. Storage
   Grain heldThe buyer holds stock until it is used. The stock can secure finance.
5. Sales
   Customers payBuyers of feed, starch and flour pay, and the finance is repaid.

The order of cash needs is general practice. Days and terms vary by contract; no public source sets them for this trade.

Repeat buyer on open accountTrade credit insurance

The seller insures most of the buyer's risk and can offer longer terms.

Grain in storageWarehouse finance

A lender funds stored grain, often against a warehouse receipt.

Many cargoes a yearStructured commodity finance

Funding repaid from the sale of the grain, with security and controls built into the deal.

Seasonal peaksSeasonal working capital

A facility sized to the months when imports are heavy.

06Can USDA's GSM-102 program help a Mexican buyer now?

USDA's GSM-102 program guarantees credit that banks extend to buyers of US farm exports. Its program page, checked on October 23, 2026, still shows an application deadline of September 30, 2026, which has passed ⁷. We could not confirm whether a new cycle has opened, so buyers should plan without it until USDA announces one.

The page says the program targets buyers in mainly developing countries. It names no eligible countries, does not mention Mexico, and does not state the tenor or the fees ⁷. A buyer that wants to use it should ask its bank and the US exporter to confirm eligibility first. Our guide to US export credit for buyers in Mexico covers the other US programs.

07What should grain importers and lenders watch next?

Three things matter most for grain buyers: whether USDA opens a new GSM-102 cycle ⁷, any new Mexican rules on imports of GM grain ⁸, and the USMCA annual joint reviews that follow the July 1, 2026 review ¹⁰. The live list of rules is on our corridor watch page.

• PendingWhether USDA opens a new GSM-102 cycle after the September 30, 2026 deadline shown on its program page ⁷.
• PendingAny new Mexican biosafety rules on imports of GM grain. Imports remained allowed as of March 2025 ⁸.
• 2026-27USDA forecasts Mexican corn imports of 26.8 million tonnes, with the US share over 99% ².
• Jul 1, 2026First USMCA joint review. The US did not agree to renew the agreement in its current form; annual reviews follow ¹⁰.
• Feb 5, 2025Mexico revoked the parts of its 2023 GM corn decree at issue in the USMCA dispute, after a panel ruled against them on December 20, 2024 ⁸.

Questions traders ask

How are US corn sales to Mexican mills usually paid?

No public source sets standard terms. As general practice, sellers ask new buyers for cash against documents or a letter of credit, and sell to repeat buyers on open account with trade credit insurance. Trading houses may also give supplier credit.

Is GSM-102 available for Mexican buyers?

USDA's program page, checked on October 23, 2026, shows an application deadline of September 30, 2026, which has passed. It names no eligible countries and does not mention Mexico. Ask your bank and the US exporter whether a new cycle has opened.

Why do grain importers face currency risk?

Corn is usually priced in US dollars, while buyers sell feed, starch and tortillas in pesos. If the peso weakens before payment, the cargo costs more in pesos. Forwards or options can fix or cap the rate.

Can stored grain be used to raise finance?

Yes. As general practice, a lender can fund stored grain against a warehouse receipt, with the grain as security. The lender checks who holds the grain and how it is controlled.

Can Mexico still import GM corn?

As of March 2025, imports of GM corn grain remained allowed, with biosafety approvals required for GM events. A 2025 constitutional decree requires corn grown in Mexico to be free of GM traits. Check for new rules before each contract.

Read next

• Product briefCorn: the US grain that feeds Mexico's mills and farms
• Corridor guidePayment terms in the corridor: open account and the alternatives
• Corridor guidePaying in dollars, earning in pesos
• Corridor guideLanded cost: import VAT, duties and fees
• Corridor guideMexico's development banks for trade
• Corridor guideUS export credit for buyers in Mexico
• Ossiano Trade Finance GuideHow each trade finance instrument works
• GlossaryTrade finance terms in plain English

Financing grain imports between Mexico and the US? Ossiano Capital works on trade finance in this corridor.

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Sources and notes

1. UN Comtrade, annual trade data 2020 to 2025, HS 1005, Mexico and the US as reporters. Downloaded October 2026; 2025 figures may be revised. https://comtradeplus.un.org/
2. World Grain, Mexico's corn production seen slipping in 2026-27 (USDA FAS report of March 13, 2026), March 17, 2026. https://www.world-grain.com/articles/22533-mexicos-corn-production-seen-slipping-in-2026-27
3. World Grain, Mexico's grain consumption continues to rise (USDA FAS), March 27, 2025. https://www.world-grain.com/articles/21204-mexicos-grain-consumption-continues-to-rise
4. USDA Agricultural Marketing Service, Mexico Indicators Report, third quarter 2025, February 2026. https://www.ams.usda.gov/sites/default/files/media/MexicoIndicatorsReport3rdQuarter2025.pdf
5. Brownfield Ag News, Corn exports soar as Mexico buys big, September 2025. https://www.brownfieldagnews.com/news/corn-exports-soar-as-mexico-buys-big/
6. Cargill, Cargill in Mexico, accessed October 2026. https://www.cargill.com/worldwide/mexico-en
7. USDA Foreign Agricultural Service, Export Credit Guarantee Program (GSM-102), accessed October 23, 2026 (page shows a deadline of September 30, 2026). https://www.fas.usda.gov/programs/export-credit-guarantee-program-gsm-102
8. Beveridge & Diamond, Mexico bans the cultivation of genetically modified corn, March 2025. https://www.bdlaw.com/publications/mexico-bans-the-cultivation-of-genetically-modified-corn-opening-door-for-other-restrictions-in-the-future/
9. The Logistics World, Mexico announces tariffs on white corn imports and defends GM grain ban, June 20, 2023. https://thelogisticsworld.com/actualidad-logistica/mexico-anuncia-aranceles-a-la-importacion-de-maiz-blanco-y-defiende-prohibicion-de-grano-transgenico
10. White & Case, USMCA 2026 joint review: United States declines to extend agreement, July 2, 2026. https://www.whitecase.com/insight-alert/usmca-2026-joint-review-united-states-declines-extend-agreement-triggering-annual

All facts on this page are as of October 23, 2026, the date of publication, and may have changed since. Rules and tariffs are as of October 23, 2026 and change often: check the corridor watch before you act.

About this guide. Prepared for Ossiano Capital. People planned, researched, wrote and checked this guide, using AI tools to help with research and checking. You are welcome to quote or reuse it: please credit Ossiano Capital and link to this page.