Mexico Corn Imports Projected at a Record High

February 8, 2012

Mexico is expecting a reduced corn harvest for the 3rd year in a row, prompting record corn imports from the United States,  its sole provider. 

Annual corn consumption is expected to slightly exceed 30 million metric tons,  compared to production near 20 million tons,  creating a need for nearly 10 million metric tons of corn imports and setting a new record.   Pent up demand for corn is due to depressed  production for 3 years in a row. 

Drought was the culprit,  damaging the summer corn produced heavily in the central states.  The summer corn harvest accounts for around 85% of total production.

This was a widespread drought,  very severe in northern Mexico and Texas.   Ranges and pastures burned up leading to strict water rationing and culling of beef cattle herds.   

Water Restrictions in Winter Corn 

Mexico also produces a winter crop of corn,  planted in September and October and harvested February-March.   The main winter corn state Sinaloa relies on irrigation water to make a good yield.  Inadequate water supplies from reservoirs were a major concern.  Last October, reservoirs in Sinaloa were said to be at  47% of capacity, compared to 88% the previous year.

La Nina was  to blame for a reduced number of Pacific tropical storms and hurricanes that would have replenished water in state reservoirs.