Mexico’s corn, wheat outlook lowered

Dry weather conditions resulting in a smaller planted area are expected to reduce Mexico’s corn and wheat output for marketing year 2023-24, according to a Global Agricultural Information Network (GAIN) report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture.

With yields also lower than initially expected due to unfavorable weather, the FAS reduced its forecast for Mexico’s corn output 9% to 25.5 million tonnes, down from 28.1 million tonnes in 2022-23, if realized.

Mexico’s 2023-24 corn imports are projected 1% higher than the previous year, albeit at a slower rate of growth compared to 2022-23, to meet increasing demand for starch and animal feed production.

Wheat production is seen at 3.5 million tonnes, 3% lower than 2022-23 production, based on updated official data that suggests reduced planted area.

The FAS revised its expectation of 2023-24 imports upward 4% to 5.5 million tonnes based on anticipated lower production and increased consumption. Meanwhile, exports of mostly durum wheat are forecast to increase by 4% to 830,000 tonnes.

“In 2023-24, the United States is forecast to continue to supply virtually all of Mexico’s grain imports due to supply chain and tariff advantages,” the FAS said.

Tags: Production, wheat, yield, imports, planted area, output, demand, corn, Mexico