Mexico
corn production estimate climbs, imports cut: USDA, by tim Worledge, 1/29/18.
The
USDA has revised upwards its estimate for Mexico’s corn production in the
2017/18 marketing year, bringing it into line with Mexican government
estimates, according to an attaché update report from the USDA.
The
production estimates rise from 26.2 million mt, as set out in the January WASDE
report, to 26.8 million mt, although year-on-year volumes remain lower.
The
increase in production will likely offset Mexico’s need to import, with the
USDA also reducing the import volume to reflect both the change and “greater
economic uncertainty,” the attaché report notes.
Mexico,
the US and Canada are currently engaged in renegotiating the North American
Free Trade Agreement, a US-driven initiative aimed at meeting a key pledge of
President Donald Trump’s election campaign.
However,
the agreement is vital in underpinning US exports, particularly in agriculture
with Mexico the biggest customer for US corn exports until recently.
US
exports amounted to just over 50 million mt in 2016/17 marketing year, with
some 24% exported to Mexico, followed closely by Japan at 23% according to the
US Grains Council.
The
WASDE report released in January currently anticipates Mexico importing 16.5
million mt, although that will change in light of the increase in production
and uncertainty around NAFTA.
Norb Leahy, Dunwoody
GA Tea Party Leader
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