Maize output might be lower

24 Jul 2013

SA's maize output estimate will edge lower for the fifth time when the crop estimates committee releases the monthly report on summer crops on Thursday‚ an I-Net Bridge survey of traders indicates.

Drought conditions earlier this year have negatively affected the expected yields in North West - the second biggest producer of white maize in the country after the Free State. "White maize‚ unlike the yellow variety‚ is not importable‚" said Hansie Swanepoel‚ analyst at Vrystaat Mielies.

Reflecting underlying market concerns and uncertainty‚ white maize is trading at about R100 premium to yellow maize on the South African Futures Exchange.

White maize for September delivery ended R21 higher at R2‚327 per ton but yellow maize for the same contract finished broadly flat at R2‚211 per ton.

The potential size of the maize crop in the season is sitting at 11.376m tons.

The total local demand in the 2013/14 marketing season is estimated at 9.553m tons‚ with 4.480m tons projected to be processed for human consumption‚ 4.400m for animal and industrial use and 63‚000 tons for gristing. About 144‚000 tons is likely to be withdrawn by producers and 425‚000 tons to be released to end consumers. About 41‚000 tons expected to be classified as net receipts or net dispatches‚ according to the data compiled by the grain and oilseeds supply and demand estimates committee.

The crop estimates committee will release updated production forecasts on sunflower seeds and soybeans‚ which are expected to remain unchanged.

Source: I-Net Bridge

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