Siseko Njobeni
22 February 2005
Johannesburg — MAIZE prices are likely to remain low following yesterday's announcement by the National Crop Estimates Committee that maize farmers would harvest 10,3-million tons this season, up from last year's 9,48-million tons.
Big maize stocks, resulting from low exports, have contributed to the falling prices.
SA is expected to have a maize carryover of 4-million tons by April.
At the close of the South African Futures Exchange yesterday, white maize, a staple food for most South Africans, was trading at R488 a ton for the March contract. Earlier in the day it touched R460 a ton.
In November, it was trading at more than R1000 a ton.
White maize production is expected to be 6- million tons, up from last year's 5,8-million tons.
The yellow maize yield should increase from last year's 3,7-million tons to 4,2-million tons.
According to a Pretoria-based agricultural commodities trader, the increases would keep maize prices at low levels.
"Unfortunately for the farmers, we are going to end up with too much maize," he said.
Grain SA economist Nico Hawkins said the maize surplus meant farmers would receive less than half their production costs back.
On average, farmers spent about R1000 a ton in production costs such as fertiliser, pesticides and equipment, he said.
Jannie de Villiers, executive director of the Chamber of Milling, said yesterday that he was not surprised by the increase.
"This is not out of line to what the (agricultural) industry expected," De Villiers said.
The crop committee also announced that commercial maize farmers had planted 2,9- million hectares - up from last month's preliminary estimate of 2,89-million hectares.
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