February 5, 2007

 

South Africa corn planting up in 2006

 

 

In an effort to balance corn supply and demand South African farmers cut the area planted to corn from 3.2 million hectares in 2004 to 2 million hectares in 2005, says a US Department of Agriculture report.

 

As a result the total crop declined from 11.7 million tonnes to 6.9 million tonnes. 

 

In 2006 the farmers increased the area planted to about 3.1 million hectares, creating the potential for a 10-million tonne crop, says the USDA report.  Weather conditions over the next two weeks, will however, play a major role in determining the size of the crop, as it is currently dry and hot in the western production areas.

 

Biofuel, including ethanol from corn, is a big issue but no additional areas were planted for this purpose in 2006.  It could, however, become a major additional outlet in the future.

 

The use of white corn for industrial and feed consumption declined to 543,000 tonnes in MY 2005-06 from 733,000 in the previous marketing year.

 

Though yellow corn is typically used for feed, the use of white corn was the result of the relative abundance of white corn and a shortage of yellow. 

 

Based on consumption from May to Dec 2006, feed use of white corn is only likely to reach 350,000 tonnes during the current, MY 2006-07.

 

The shortfall in yellow corn is made up by imports, but with the recent increase in world prices, this is expected to slow down, leading to increased use of lower grade white corn for feed, according to the report.

 

The May-Ap 2006-07 exports have been slow at an average of 45,000 tonnes/month due to a lack of overseas buyers and a slowdown in sales to Zimbabwe.

 

Mexico has been putting out feelers for a reported 100,000 tonnes of white corn with no specific GMO requirements, which could bolster exports.

 

For the full USDA report, please click here