The U.S. ag attache in Mexico has lowered its estimate of the 2011-12 corn crop, but looks for a recovery in production in the coming year. The attache's old-crop corn estimate of 18.6 million metric tons (MMT) is 1.9 MMT below USDA's current peg, but it says if summer rains return to normal after last year's devastating drought, a crop of 21.0 MMT should be expected. As a result, the attache look for corn imports from the U.S. to decline from 9.8 MMT in 2011-12 to 8.8 MMT in 2012-13.
The attache says rains are still badly needed after the worst drought in over 70 years devastated ag production across most of the country last year. The attache says, "According to the National Water Commission, the drought is expected to continue until the rainy season begins in summer of 2012. The prolonged drought has affected 70% of the country and decimated agriculture in Mexican states of Coahuila, Aguascalientes, San Luis Potosi, Sonora, Tamaulipas, Zacatecas and Durango (among others). The financial losses of the drought have surpassed 16 billion pesos ($1.3 billion US) including losses of 9 billion pesos ($710 million US) for corn and 6 billion pesos ($280 million US) for beans."
Juli says: One has to hope the weather pattern will change for our neighbor to the south, as the country's crop production was cut sharply last year. It will take timely rains throughout the season to sustain crops after last year's dryness parched soils.