Commodities Buzz: USDA Estimates Sharp Drop In Mexican Wheat and Rice Production In 2018-19

As per latest update from United States Department of Agriculture (USDA),the Mexican wheat and rice production estimates for 2018-19 have been revised downward as planted area for both crops is lower than previously expected, Wheat production in 2018-19 is expected to drop by 14% from the previous forecast this year to 2.8 million tonnes, down from 3.27 million.The agency cited low water availability in key wheat producing areas and a sluggish market as reasons for the decline in planted area.

Meanwhile, rice output for 2018-19 is expected to drop by 10% from an estimate earlier this year, falling to 268,000 tonnes from 298,000.The USDA said Mexican corn and sorghum production for 2018-19 are expected to stay consistent with previous estimates. Corn output is pegged at 26 million tonnes, just 800,000 tonnes fewer than in 2017-18. Sorghum production is expected to reach 4.8 million tonnes, slightly higher than the 4.63 million tonnes produced in 2017-18.