Mexico: Cotton and Products Update

Total cotton production for marketing year (MY) 2018/19 is forecast at a record 1.89 million bales, 18 percent higher than the previous marketing year. This reflects initial results of the Secretariat of Agriculture, Livestock, Rural Development, Fisheries and Food (SAGARPA) 2017- 2030 cotton strategy; in addition to a continuation of producer preference to plant cotton over other crops such as sorghum and corn used for silage, and is attributable to attractive prices and good integrated pest management with genetically-engineered (GE) seeds. Post forecasts that record production, and support of the domestic industry through a higher use of the Forward Contract Program, will increase domestic consumption by 6 percent. The United States will remain the main supplier of cotton to Mexico, and account for nearly 100 percent of imports. Sources indicate effects of retaliatory tariffs between the U.S. and China could be responsible for new Chinese investments in the textile sector in Mexico, and increase exports of cotton to China. Post forecasts a 35 year high export level of 700,000 bales (double the previous MY) mainly to China and Vietnam.  

Mexico: Cotton and Products Update