Drought in Mexico increases demand for imported grain

Mexico is actively harvesting winter crops, but the prolonged drought has led not only to a reduction in the area sown to wheat and corn, but also significantly reduced their yield.

In Mexico, almost all wheat is grown on irrigated land, so sufficient water levels in dams are essential for a good harvest. But due to dry weather, this year's water level in reservoirs was insufficient.

The drought also reduced corn production, which the USDA FAS estimates will be 23.3 million tonnes in 2023/24, down 17% from the previous season's record 28.1 million tonnes.

Mexico grows two corn crops, of which 70% is summer (sown from April to August and harvested from October to January) and 30% is winter (sown from November to January and harvested from April to July).

The country's authorities also lowered estimates of planted and harvested areas, as well as yields in most regions due to low moisture reserves during the planting period, insufficient irrigation and crop damage by pests and diseases.

The dry weather that has prevailed in the south of the country since January also worries coffee producers. Almost 80% of plantations already suffer from a lack of rainfall, as a result of which coffee production may decrease by 30%.

According to experts, almost 170,000 hectares of agricultural land will feel the negative impact of the drought.