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Mexico Suffers
April 11, 2012

Dow Jones Newswires report Mexico's autumn-winter corn crop needs more rain after months of drought. Carlos Salazar, president of the National Confederation of Corn Growers, says long-awaited rain fell in February, but it was not enough. The corn harvest is expected to start in May in the states of Sinaloa, Tamaulipas, and Nayarit. USDA, in its April Supply/Demand report, raised its estimate of US corn exports to Mexico 700,000 tons from last month. The Foreign Agricultural Service cut its estimate of Mexico's corn production by 1.5 million tons. FAS says the reduction is attributed to adverse weather conditions, including late rains, drought and frost that impacted the spring/summer crop, and low water reservoirs in Sinaloa impacting the fall/winter crop. The US Grains Council recently reported that the effect of the drought on Mexico's demand for feed grains is likely to last for two to three years.


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