Cash Strategist 06-26-2024
Published
6/24/2024
Mexico crop update
Mexico’s 2024 growing season has had an abysmal start, as more than three-quarters of the country are experiencing drought. Typically, Mexico is a top 10 corn producer in the world, averaging around 25 million to 30 million metric tons of production annually.
Most of this is used domestically in both livestock feed and food production, as corn tortillas are a staple food in the Latin American country. So much so, in fact, that on top of this production, Mexico also imports an additional 15 million to 20 million metric tons of corn annually to satisfy demand.
As of the latest update from the USDA, though, Mexico is forecast to import 22 million metric tons of corn in the 2023-24 marketing year that ends Sept. 30. Mexico is also forecast to import 22.2 million metric tons of corn in the 2024-25 marketing year. Both figures would be records, if realized, reflecting the shortage of grain available in the country.
As of May 31, 76.09% of Mexico was rated in D1-D4 drought conditions. This is an increase of nearly 16% from the start of the calendar year and a nearly 43% increase from May 31, 2023. However, growing areas in the eastern half of the country are expected to receive desperately needed rains in coming days, as Tropical Storm Alberto is seen bringing rainfall of 5 to 12 inches to wide swaths of the...
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