Business

Mexico's Cotton Production Forecast To Rise 22% In 2021/22 Season

According to the USDA, Mexico's cotton production is forecast to increase 22% for marketing year 2021/22, on increased global prices and ongoing drought conditions that favour cotton production over other more water reliant crops. However, final production and fibre quality is likely to fluctuate, as producers continue to face a number of challenges including seed, water, and input availability." Poor quality supplies are typically destined for export to Asia, as the domestic industry prefers high quality domestic supplies and imports from the United States. Mexico's imports are forecast to increase in 2021/22. Meanwhile, consumption is forecast down from 2020/21 levels on low consumer purchasing power after a significant contraction in the Mexican economy in 2020 and a forecasted sluggish recovery.