MEXICO’S GRAIN PRODUCTION TO INCREASE IN 2024-25
After a year of severe drought conditions, Mexico is expected to produce more corn, wheat, rice and sorghum in 2024-25 based on expectations for a gradual recovery to average precipitation, according to a report from FAS. Corn production is estimated at 25 million tonnes. Imports are forecast up 1% from the previous year. Wheat production is expected to increase 4% to 2.8 million tonnes. Imports are projected 10% higher at 5.7 million tonnes, the FAS said. Nearly 70% of the wheat is coming from the United States, a drop from 90% in the previous market year.
Russia and Canada have emerged as strong competitors, with Russian prices dropping due to tariff removals and Canada supplying a niche protein. Wheat exports are estimated at 600,000 tonnes, a 25% drop from 2023-24. Milled rice production is estimated at 160,000 tonnes, an increase of 10% from the previous year. Milled rice imports are forecast at 840,000 tonnes, a drop of 2% from the 2023-24 estimate. Sorghum production is estimated at 4.5 million tonnes, an increase of 10% Imports are forecast down 17% to 50,000 tonnes based on estimated lower domestic demand from the animal feed sector.
(Link: WorldGrain)
INDIA MAY REDUCE WHEAT IMPORT DUTY
With supplies shrinking, India is considering reducing duties on wheat imports to combat inflation, Bloomberg reported on June 24. The government also announced it has imposed stock limits of 3,000 tonnes for wholesalers and 10 tonnes for retailers, which will remain in place until March 2025. Part of India’s strategy to combat inflation and maintain adequate supplies has included a ban on wheat exports since May 2022. In May, India reported that wheat stocks in government warehouses had reached their lowest level since 2008 with a 10% year-on-year drop. The FAS sees India’s import total more than doubling in 2023-24 to 120 million tonnes and surging to 300,000 tonnes in 2024-25.
(Link: WorldGrain)
