SA's maize output estimate expected to tick up
South Africa’s 2018 maize harvest is pegged at 12.991 million, just above the government’s previous estimate, as favourable weather continues as harvests begin, a survey of traders and industry watchers showed on Wednesday.
The government’s Crop Estimates Committee (CEC), which will provide its fifth 2018 production forecast crop next Wednesday, is expected lift its estimate 0.6 percent from the 12.909 million tonnes it forecast in May.
“South African maize farmers are expected to harvest in ‘full swing’ the next couple of weeks,” said Grain Option Market trader Warren Langridge.
Traders expect the harvest to consist of 6.768 million tonnes white maize, the staple food, and 6.223 million tonnes of yellow maize, used mainly in animal feed.
“With these estimates, what this means is that South Africa could be well supplied in this year, if we take into consideration the stocks of last year, it gives you total supplies of somewhere around 16.4 million tonnes,” said Agricultural Economist Wandile Sihlobo.
Domestic consumption is around 10 to 10.5 million tonnes.
In 2017, a record 16.82 million tonnes was harvested after favourable weather conditions boosted yields, exceeding the previous record of 14.656 million tonnes in 1981.
Maize prices have remained depressed with the white maize contract ending July down 61% to 2 072 rand by 0914 GMT from the record highs it reached in January 2016 of 5 376 after a severe drought impacted yields.
-Nampa/Reuters
“South African maize farmers are expected to harvest in ‘full swing’ the next couple of weeks,” said Grain Option Market trader Warren Langridge.
Traders expect the harvest to consist of 6.768 million tonnes white maize, the staple food, and 6.223 million tonnes of yellow maize, used mainly in animal feed.
“With these estimates, what this means is that South Africa could be well supplied in this year, if we take into consideration the stocks of last year, it gives you total supplies of somewhere around 16.4 million tonnes,” said Agricultural Economist Wandile Sihlobo.
Domestic consumption is around 10 to 10.5 million tonnes.
In 2017, a record 16.82 million tonnes was harvested after favourable weather conditions boosted yields, exceeding the previous record of 14.656 million tonnes in 1981.
Maize prices have remained depressed with the white maize contract ending July down 61% to 2 072 rand by 0914 GMT from the record highs it reached in January 2016 of 5 376 after a severe drought impacted yields.
-Nampa/Reuters
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