May 27, 2014

Forecast for South Africa's corn output revised up

South Africa's corn output for this year is forecast to rise to 13.27 million tonnes, a Reuter's survey showed.

The previous forecast estimated the figures to be 13.029 million tonnes.

South Africa, the continent's biggest corn producer, is expected to reap the biggest harvest in more than three decades.

Corn prices hit record highs of 3,300 rand (US$319) per tonne earlier this year. However, the expected large crop pushed down prices.

"The price can drop a little further due to harvesting pressure," said Dawid Snyman, a sector information manager at Absa Agribusiness, "Too much maize will be available up to the end of August which will allow the market to respond."