PAKISTAN ANTICIPATING RECORD WHEAT CROP
Record wheat production of 31.4 million tonnes is forecast for Pakistan in the 2024-25 marketing year, according to a report from FAS. Based on the Government of Pakistan’s official data, wheat output is projected to increase by 11% over last year’s total of 28.2 million tonnes. It said the surge in production is primarily attributable to the increase in outturn in the Punjab province. However, with the Pakistani government’s recent decision to end its decades-long practice of buying wheat from farmers at a minimum guaranteed support price, wheat prices declined sharply, which likely will lead to reduced plantings for the next crop year.
The government’s decision came after it began allowing private sector flour millers to import wheat duty free, making imported wheat cheaper than prevailing domestic prices. “It is still unclear whether this year’s policy signifies a permanent liberalization in wheat price policy or just a change for the 2024-25 crop,” the FAS said. Population growth and consumers’ preference for wheat-based products continue to drive demand higher in Pakistan, with domestic consumption in 2024-25 expected to climb to a record 31.2 million tonnes.
(Link: WorldGrain)
MEXICO TO DROP PLAN TO CUT YELLOW CORN IMPORTS, NEW AGRICULTURE MINISTER SAYS
Mexico’s incoming government will discard a core goal of outgoing President Andres Manuel Lopez Obrador to reduce imports of yellow corn and achieve self-sufficiency in production of the grain. Under the administration of Lopez Obrador, Sheinbaum’s mentor, Mexico aimed to dramatically reduce imports of yellow corn, most often originating from the U.S., in favor of boosting local production. The government, however, failed to reduce about $6 billion in yellow corn imports annually during his tenure. The policy originated from Lopez Obrador’s attempts to limit the use of genetically-modified (GM) corn, a position that sparked an ongoing trade dispute with the U.S., by far Mexico’s largest commercial partner. Most imported yellow corn is GM and used as fodder for Mexico’s livestock sector.
(Link: Reuters)
