Patrickov wrote:Why is this the case? Aren't both food in high demand?
The US, with its larger corporate owned fields and more advanced automated harvesters, can supply wheat at a lower price than it is possible for many small farmers in Mexico to sell wheat at.
Part of the reason may be the climate too. Where wheat is grown in the US, the soil dries out less due to the colder overall yearly temperatures, so a little bit less water is required.
When Mexico opened up its market to the US, US wheat flooded Mexico and put many small farmers out of business, since they could no longer compete. The US exports wheat to many other countries too, the US produces more wheat than it consumes. There are huge areas of the US where wheat can be grown but not much else can be commercially grown due to the colder drier climate. That is one reason that wheat is so plentiful, it is much easier to grow in places that would be difficult to grow other crops.