April 24, 2013

South Africa may cut its 2013 corn crop forecast

As an earlier drought in some of the main growing areas impact on yields, South Africa will likely cut its 2013 corn output forecast.

South Africa's provinces of Free State and North West, which together produce more than half of the country's corn, were hit by the dry conditions earlier this year, dashing prospects for better yields.

In its second production forecast last month, the South African government said the country was likely to harvest 11.75 million tonnes of corn this year, from 11.83 million tonnes last year.

An average forecast of six trading houses polled by Reuters showed the market now expects the 2013 crop to come in at 11.5 million tonnes.

"The crop estimate will be lower than last month's ...the dry spell lasted a long time during the pollination and silking phase of the corn," a trader said.

The estimates ranged between 11.2 million tonnes and 11.8 million tonnes. The government Crop Estimates Committee (CEC) is due to release its third production forecast of this season's summer crops output on Thursday (Apr 25).

South Africa is the biggest corn producer on the continent and exports to its neighbours and overseas markets such as Mexico, South Korea and Italy.