MEXICO: Following are selected highlights from a report issued on Wednesday by the US Department of Agriculture’s Foreign Agricultural Service post in Mexico City:

“Mexico cotton production is forecast to increase 22 percent for marketing year 2021/22, on increased global prices and ongoing drought conditions that favor cotton production over other more water reliant crops. However, final production and fiber 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. Post forecasts an increase in 2021/22 imports based on uncertainty of domestic fibrE quality.

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.”