JOHANNESBURG: South African maize farmers are expected to harvest 7% more of the staple crop during the 2020/2021 season compared with the previous season, with yields boosted by favourable weather, a Reuters survey showed on Friday.
South Africa’s Crop Estimates Committee (CEC) is expected to forecast the 2020/2021 maize crop at 16.352 million tonnes, up from the 15.300 million tonnes harvested last season, the average estimate of five traders and analysts showed.
The forecast is 1% higher than the CEC’s May forecast of 16.180 million tonnes. As the harvest season approaches the halfway mark, analysts remain hopeful that the 2020/2021 season will see the second-largest maize crop on record.
“This large crop will ensure that South Africa will have sufficient maize supplies for domestic consumption of about 11.5 million tonnes, and also a large exportable surplus of over 2.5 million tonnes,” said Agricultural Business Chamber chief economist Wandile Sihlobo.
The survey expects the crop to consist of around 9.110 million tonnes of white maize, used mainly for human consumption, and around 7.247 million tonnes of yellow maize, used mainly for animal feed.
Global maize prices have been supported by higher demand from China and dry conditions in some producing areas, with the white maize futures contract due in September closing up 2.28% at 3,095 rand on Friday.
“The biggest drivers for local maize currently, seem to be international corn prices and supply and demand,” said Riddermark Capital Grain Option Market Trader Warren Langridge. The CEC will release its fifth production forecast for 2021 summer crops on June 29.
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