Maize estimate slightly higher

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The country's maize output is expected to be 11.394m tons this year‚ up 0.2% from last month's forecast‚ the crop estimates committee said on Thursday (25 July) in its sixth production estimate report for this year.

Yellow maize forecast rose 2.95% to 5.645m tons but white maize forecast fell 2.4% to 5.749m tons mainly because of the effect of dry conditions experienced earlier this year in the Free State and North West‚ which account for the biggest production areas for this crop.

The committee said physical producer deliveries - sitting at 8.392m tons - influenced its decision to up the estimates.

The total South African demand for maize in the 2013/14 marketing season is estimated at 9.553m tons‚ with 4.480m tons projected to be processed for human consumption and 4.400m for animal and industrial use‚ according to data compiled by the grain and oilseeds supply and demand estimates committee.

Standard Bank analyst Lume Kleynhans said the improved US corn outlook presented a bear factor for domestic market prices. The US is the world's biggest producer of maize‚ which is used as an input in a vast array of food production.

"Traders expect the US prices to trade at lower levels over the longer term if the improved weather allows them to replenish stock levels‚" Kleynhans said.

In terms of other summer crops‚ the production estimate for sunflower was up 2% to 576‚500 tons but soya beans was down 1.95% to 787‚100 tons.