Mexico Sees 2011 Corn Output Rising on Better Weather

Corn production in Mexico, the world’s fourth-largest grower, will rise 4 percent in 2011 from a year earlier because of more favorable weather conditions, according to the Agriculture Ministry.

White and yellow corn output is expected to rise to 25.2 million metric tons this year, the ministry said today in an e- mailed statement. Output in 2010 was 24.2 million tons.

About 93 percent of the country’s production is white corn, used to make staple food such as tortillas. Mexico imports 8 million to 9 million tons of yellow corn a year, mostly from the U.S., because domestic production isn’t sufficient to cover local demand. Yellow corn is used to feed animals.

Corn futures have surged 68 percent in the past year as adverse weather reduced global production. Corn for March delivery fell 3.25 cents to $6.3925 a bushel at 10:37 a.m. on the Chicago Board of Trade. Yesterday, the price touched $6.495, the highest since July 2008.

The U.S. is the world’s largest corn producer followed by China and Brazil.

(Source: http://www.bloomberg.com/news/2011-01-14/mexico-sees-2011-corn-output-rising-on-better-weather-upddate1-.html)