MANHATTAN, KANSAS, U.S. — The IGP Institute hosted 11 grain buyers that were part of a U.S. Grains Council (USGC) trade team during a two-day training session.

The goal of the session was to help those purchasing grain in Mexico to have a better understanding of risk management, trading and hedging principles.

“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,” said Guy H. Allen, senior agricultural economist for Kansas State University’s IGP Institute and leader of the two-day event.

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 said the course participants were an engaged group and appreciated the objective approach of his teaching style. He also sees this audience as key influencers in the marketplace.

“Large corn crops forecast for Bazil and Argentina will provide stiff competition for higher priced U.S. corn in the coming 201-2020 marketing year,” Allen said.

He also noted that corn is the largest crop in Mexico in terms of production and consumption.

When looking at the wheat market, Allen said 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 said.