Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

South Africa's 2019 maize crop seen down 16 percent on drought conditions: Reuters poll

Published 03/25/2019, 02:52 AM
Updated 03/25/2019, 02:55 AM
© Reuters. A maize garden is seen below houses at a village near Mthatha

JOHANNESBURG (Reuters) - South Africa is likely to harvest 16 percent less maize in 2019 compared with the previous season after drought delayed plantings, a Reuters poll showed on Monday.

The government's Crop Estimates Committee (CEC), which will provide its second production forecast for the 2019 crop on Tuesday, is seen pegging the harvest at 10.482 million tonnes, down from the 12.510 million tonnes in the 2017/2018 season, the poll six traders and market analysts showed.

The 2019 harvest is expected to consist of 5.317 million tonnes of the food staple white maize and 5.165 million tonnes of yellow maize, which is used mainly in animal feed.

The crop is slightly higher than the country's annual consumption of around 10 million tonnes but the production outlook could still be dampened by warmer weather.

"The medium term weather outlook still calls for better growing conditions across most production areas. However, frost damage may dampen the production outlook specifically for the late plantings in parts of the Free State and the North," said FNB senior agricultural economist Paul Makube.

White maize prices are just below highs reached in January of 3,350 rand on fears that yields would be hit by delayed plantings, with the contract ending July closing at 3,052 rand on Friday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.