White corn, a carbohydrate staple in Mexico will be impacted by an ongoing drought.  The state of Sinaloa that grows white corn in winter is severely impacted according to a USDA spokesperson who has knowledge of the area. Dry conditions prevailed in the fall before planting and soil moisture has deteriorated since the start of the season.  Reservoirs in the State have less than 15 percent of their capacity eliminating the possibility of irrigation.

The cost of white corn is a major concern for the Government of Mexico especially in an election year.  Inflation in the price of tortillas and other basic foods is inevitable.  It is noted that AMLO, the President of Mexico previously issued a decree banning importation of GMO yellow corn for human consumption.  There is limited availability of white corn from the U.S. that could supplement supplies in Mexico. This will result in inevitable shortages and higher prices absent Government intervention and support.