South Africa’s 2018 maize forecast unchanged at 13.2 million tonnes

• by Reuters
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JOHANNESBURG (Reuters) – South Africa’s maize harvest is forecast to be unchanged at 13,207 million tonnes this year, slightly below market expectations, the government’s Crop Estimates Committee (CEC) said on Thursday.

A hawker prepares a cob of corn at his makeshift shop in Soweto, file. REUTERS/Siphiwe Sibeko

The CEC’s latest estimate is unchanged compared with the 13,207 million tonnes it forecast in June as weather conditions stabilised.

The estimate is 0.7 percent lower than a Reuters poll that pegged the harvest at 13,305 million tonnes.

This year’s harvest is expected to consist of 6,879 million tonnes of the food staple white maize and 6,327 million tonnes of yellow maize used mainly in animal feed, the CEC said, in its sixth production forecast for the 2017/2018 season.

The expected harvest is 21 percent lower than the record 16.82 million tonnes harvested in 2017 when yields were boosted by improved weather and rainfall conditions across the maize belt. The previous record of 14.656 million tonnes was set in 1981.

Maize prices have remained depressed with the white maize contract ending September down 60 percent at 2,130 rand ($161.40) compared with its all-time high of 5,376 rand scaled in January, 2016 when drought concerns mounted and fuelled food price pressures in Africa’s most industrialised economy.

($1 = 13.1974 rand)

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