Mexico: Cotton and Products Update

Post forecasts marketing year (MY) 2023/24 production at 0.92 million 480-lb bales, a 42 percent decline compared to MY 2022/23 due to higher input costs, drought conditions, power outages, and lack of access to new genetically engineered seed varieties. Local industry and government officials project output from the recent crop harvests will be significantly lower than in previous years. Consumption is estimated to decline due to slow growth in domestic demand, increased competition from synthetic fibers and yarn imports from Asia, and the peso’s appreciation against the dollar.