March 8, 2012

South Africa's 2011/12 corn exports to reach two million tonnes

Producer body Grain SA said in its annual report Wednesday (Mar 7) that similar to last season's figure, South African corn exports this market season, which ends April 30, could reach two million tonnes.

Export commitments for Africa's biggest corn producer have also forced the regional breadbasket to import some corn, keeping local futures prices high and pressuring domestic food inflation.

"Expectations are that exports this season can reach two million tonnes (1.24 million tonnes of white corn and 760,000 tonnes of yellow corn) if the export rate can be maintained," the report said.

"South Africa is positioned to serve the white corn market in Africa, but also to provide countries in the east like China and Korea with yellow corn. Deep-sea exports will be maintained as long as international prices and favourable exchange rate ratios can be maintained," it said.

Grain SA said South Africa exported 2.06 million tonnes of corn last season. The government's Crop Estimates Committee last month forecast South Africa would harvest 11.7 million tonnes in the current 2011/12 production season, compared with 10.36 million tonnes in the last one.

Local corn prices are off recently scaled historic peaks but remain high. The most active July white corn contract ended 1.75% higher on Wednesday at ZAR2,153 (US$284) a tonne, while yellow corn for delivery in the same month ended 1.32% up at ZAR2,119.60 (US$280) a tonne.