A 4% drop in corn production is projected for the crop yield for 15/16 compared to 14/15.
From the monthly report by the International Grains Council:
Revisions for wheat, barley and sorghum lift the forecast for world total grains (wheat and coarse grains) production in 2015/16 by 9m t m/m (month-on-month), to 1,996m, 1% short of last season’s record. The y/y (year-on-year) fall mainly reflects an anticipated drop for maize (corn), seen down by 38m t, with the projection trimmed from before by a further downgrading of the EU crop.
High production costs, coupled with the progressive reduction in the tariff paid on yellow corn from the United States, are keeping sorghum producers in the country in a state of check.
With the gradual elimination of import yellow corn from the United States, established in DR-CAFTA, a 0% tariff will be reached in 2020, a rate which currently stands at 10.1%. At the moment the cost of producing a hundredweight of sorghum is $9.28, while the price of yellow corn including tax is $11.55 per hundredweight.
The drought that affected in 2014 has worsened this year, threatening shortages of basic foodstuffs.
An article on Nacion.com reports that the director of Agricultural Extension of the Ministry of Agriculture of Costa Rica, Felipe Arguedas said "... We are very concerned because two years of drought are joined together; we believe that 2015 will be worse than 1997, which was the driest year recorded so far."
To compensate for the reduction in local production, the government plans to allocate $8.8 million for the purchase of 39,000 hundredweight of beans and 230,000 hundredweight of corn.
In the period from January to August 2014, the government imported maize from the United States and Mexico, and in the case of beans, 60% was purchased from the US, 20.3% from Canada, 11.4% from China, 6.7% from Nicaragua and the rest 1.5% from Argentina.
Agroindustrias Gumarsal has announced that it will increase capacity at the corn flour processing plant it operates in the municipality of San Juan Opico.
After the Maseca plant announced its closure, the Salvadoran company Gumarsal has announced an increase in the production capacity of the plant it operates in the country, which currently produces 3000 tons of cornmeal per month.
All of the production centralized in El Salvador will close and be moved to another Central American country, without having been specified yet whether this will be Honduras or Guatemala. The reason for the closure is underutilized production, as only 35% of the plant's capacity is being used.
As part of the Agritrade Platform, Guatemala will participate for the 27th time in PMA Fresh Summit, the most important international trade show and convention of fruits and vegetables in the United States, which will take place at Anaheim Convention Center, California from October 17th to 19th.
XAGRO S.A. Announced that they have signed a purchase agreement with Jam LLC to buy 5,000 MT of red beans from China that will be sold to importers throughout Central America to help ease market pressure and lower the high prices caused by recent shortages.