Maize futures slip on estimates of excess supply
The July white maize contract fell R11 to multimonth lows of R1‚888 a ton‚ taking losses to 8.70% since May 2. Yellow maize was down R14 to R2‚009 a ton‚ which is a fall of 7.29% for the month.
South African farmers are expected to harvest 13-million tons of maize this year‚ according to preliminary estimates by the Crop Estimates Committee‚ up from 11.811-million tons last year.
The total demand - local and exports - for maize in the marketing season to end May next year is projected at 11.862-million tons‚ according to data compiled by South Africa Grain & Oilseeds Supply & Demand Estimates Committee.
The September 2014 white maize contract lost R11 to R1‚935 a ton‚ with December white maize falling R12 to R1‚994 a ton. The September 2014 yellow maize contract was down R11 to R2‚046 a ton‚ with the December contract losing R11.40 to R2‚091 a ton.
"The lower international prices also contributed to the weaker domestic session‚" Vrystaat Mielies analyst Hansie Swanepoel said.
The July 2014 wheat lost R17 to R3‚928 a ton‚ with wheat for delivery in September 2014 closing R57 lower to R3‚823 a ton and December 2014 wheat losing R25 to R3‚740 a ton.