# Mexico’s Drought Is So Severe It Helped Banxico Turn Hawkish

> Mexico's drought has become severe enough to contribute to the central bank's hawkish turn, according to a Bloomberg analysis. The article ties dry conditions to inflation pressures that pushed Banxico toward tightening.

- Date: 2021-06-29 · published 2021-06-29T12:00:00.000Z
- Category: weather · region Mexico · magnitude low
- Page: https://feedsoft.ai/events/46803-mexico-s-drought-is-so-severe-it-helped-banxico-turn-hawkish
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [Sorghum](https://feedsoft.ai/c/SORGHUM.md), [Soybean Meal](https://feedsoft.ai/c/SBM.md)

## Why it matters

Drought in Mexico reduces domestic crop output and raises food inflation, which increases Mexico's reliance on imported corn, sorghum and soybean meal and supports those prices.

## Read by commodity

- SBM: bullish ▲
- CORN: bullish ▲
- SORGHUM: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2019-12-04 | [Drought hits Mexico’s corn outlook, boosting 2020 imports…](https://feedsoft.ai/events/55545-drought-hits-mexico-s-corn-outlook-boosting-2020-imports.md) | -3.9% | +1.5% |
| CORN | 2024-02-15 | [Drought raises Mexico’s corn import outlook \| World Grain](https://feedsoft.ai/events/31645-drought-raises-mexico-s-corn-import-outlook-world-grain.md) | +0.3% | +4.4% |
| CORN | 2025-01-29 | [Drought, low prices to drop Mexico’s grain production  \| World Grain](https://feedsoft.ai/events/26570-drought-low-prices-to-drop-mexico-s-grain-production-world-grain.md) | +1.0% | -1.0% |
| CORN | 2021-04-28 | [Mexico's 2020/21 corn outlook endangered by drought fears: GCMA - Fastmarkets](https://feedsoft.ai/events/47591-mexico-s-2020-21-corn-outlook-endangered-by-drought-fears-gcma-fastmarkets.md) | +4.4% | -7.3% |
| CORN | 2025-05-20 | [It's Not Just Drought Meteorologists Are Concerned About This Summer, It's Also Heat - AgWeb](https://feedsoft.ai/events/13089-it-s-not-just-drought-meteorologists-are-concerned-about-this-summer-it-s-also.md) | +1.6% | -2.4% |
| SBM | 2022-01-19 | [Why South America's drought is different this year](https://feedsoft.ai/events/13750-why-south-america-s-drought-is-different-this-year.md) | +0.2% | +10.8% |
| SBM | 2021-11-29 | [La Nina Is Set to Deliver Drought to Argentina’s Soybean Crop - Bloomberg](https://feedsoft.ai/events/14070-la-nina-is-set-to-deliver-drought-to-argentina-s-soybean-crop-bloomberg.md) | +1.9% | +13.4% |
| SBM | 2025-10-17 | [La Niña Watch Is On — Here’s How It Could Shake Up Drought and Winter Weather - AgWeb](https://feedsoft.ai/events/22315-la-nina-watch-is-on-here-s-how-it-could-shake-up-drought-and-winter-weather.md) | +5.0% | +18.7% |

## Sources

- bnnbloomberg.ca: https://www.bnnbloomberg.ca/mexico-s-drought-is-so-severe-it-helped-banxico-turn-hawkish-1.1623018

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.