WHILE South Africa managed to produce more maize than initial estimates‚ allaying fears earlier in the season of a smaller crop because of drought in some parts of the country‚ a good US harvest is still needed if local prices of the grain are to decline significantly.
"We still need a good American maize crop to restore and increase international stock levels before we can expect significant reductions in prices, because SA prices are determined between export and import parity," Standard Bank senior manager for agri business support, Marthinus Loock, said.
The US – used as a benchmark for world prices, as the world's largest producer and exporter of maize – experienced one of its worst droughts in its planting season in almost half a century.
At the close of trade yesterday‚ white maize for December delivery traded at R2294 per ton. Yellow maize‚ used mainly in animal feed in South Africa‚ ended the day at R2315 a ton. – I-Net B ridge