Mexico Strong Corn Consumption Prompts Higher Imports

November 2, 2011

Mexico corn production this season may reach only 20.5 million metric tons,  compared with original expectations for 24 million metric tons.   Low production may prompt record imports of United States corn near 10 million metric tons, or higher.    

News of a production shortfall came from a new USDA report late in October,  Feed Grain Update on Mexico.     

The Secretary of Agriculture Mayorga said it was a difficult season for corn, beginning with rain delays in key central Mexico producing areas.  Frost in early September  damaged corn in the states of Puebla, Mexico, Hidalgo ahd Tlaxcala.    Many of these same areas had drought earlier in the growing season.    

The second crop of corn, grown in the winter, may suffer from  a serious shortage of irrigation water in Sinaloa, the key state.   Reservoir levels were reportedly 46.8 percent of capacity, compared to 87.9 percent in 2010.  

Mexico corn production has stagnated near 20-21 million metric tons for 3 straight years.   Usage has been 28- 31 million metric tons.   Three straight years of low production may lead to record  corn imports of 10 million metric tons in 2011-12.    Mexico corn imports come  exclusively from the United States. 

Corn the Major Contributor to Grain Production

 Corn makes up the biggest share of total grains produced, comprised of corn, sorghum, barley, wheat and dry beans.    It is the staple of the Mexican diet,  also heavily used as livestock feed and distiller grains.  

Total corn disappearance 32.1 million metric tons in 2011-12 is way above the new crop estimate 20.5 MMT, given in late October from the Mexico agriculture secretary.    Very large imports would be needed to address domestic usage  of 10 MMT or more.

  Corn is grown in many areas of Mexico, but is mostly heavily cultivated in the central states.