Maize futures slip on estimates of excess supply

20 May 2014

South African maize futures fell on Monday, 19 May‚ bringing losses in the actively traded July contracts to more than 7% since the start of May‚ amid projections of higher crop yields in the country this year.

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.

Source: I-Net Bridge

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