- Mexico was graced with above average rainfall in August.
- This eliminates the risk of drought and means Mexico’s cane crop should align with historical norms in 2020/21.
- With this, and the reduced US quota, Mexico may export more sugar to the world market next season.
Mexico Graced with Above Average Rainfall in August
- Mexico received a good amount of rain August, meaning its cane crop shouldn’t suffer from a lack of rain this summer.
- This came as a relief after Mexico suffered a worryingly dry July.
- One dry month will not be enough to hinder Mexico’s cane growth, as the country had strong rainfall up until July.
- Its cumulative rainfall now aligns with the historical average thanks, in part, to a wet spring.
- With this, the Mexican sugar market should rebound and perhaps produce a surplus amount of sugar next season, which could then be exported to the world market.
- This will depend both on how much cane is harvested this season, and what sized quota Mexico receives for US imports.
- We think Mexico will receive an 808k tonnes quota, 30% of which can be white sugar.
- If this current estimate holds true, we think 150k tonnes will be exported to the world market.
Other Opinions You May Be Interested In…
- Mexico 2019/20 Overview: The Good, The Bad, and The Drought
- The Mexican Cane Crop is Finishing; Are Imports Starting?
- Hot and Dry Mexican Summer Puts Cane at Risk