Mexico: Cotton and Products Annual

Mexico cotton production and area planted is forecasted to increase in marketing year (MY) 2022/23, mainly due to high global demand and corresponding high prices. Additionally, drought conditions observed during the planting season over the past two years, has encouraged the planting of cotton over other more water reliant crops. Despite an increase in planted area, yields are forecasted lower than the previous MY due to low new seed availability, and the high cost of fertilizers and herbicides. Consumption is forecasted up slightly, on high demand for yarn and fabrics, particularly in the Central America Free Trade Agreement (CAFTA) region for final product exports to the United States. Mexico cotton imports from the United States are forecasted to increase 18 percent during MY 2022/23 on insufficient domestic production and preference for consistent high-quality fibers.