Mexican Drought May Increase Demand for U.S. Feed Grains

Mexico is experiencing its worst drought in 70 years – according to Mexico Rural Development Under Secretary Ignacia Rivera – who predicts it will lower corn production to 780-million bushels – compared to 830-million bushels in the 2010-2011 year. Mexico already is the second-largest customer for U.S. feed grain exports and a leading buyer of DDGS – and current grain shortages could push Mexico’s imports of above 374-million bushes and sorghum above 118-million bushels. Crop losses most likely will create more demand for U.S. exports – but livestock losses due to the drought could potentially offset those losses. Already 60-thousand cattle have died.


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