June 15, 2007

Zambia's June corn supply seen to escalate

Zambia's corn supply is projected to intensify this month when moisture levels in the crop are expected to come down, Zambia Times reported on Thursday (June 14).

Zambian trading form CHC Commodities Limited said the supply of the crop, though at an insufficient rate, had been rising gradually to satisfy current demand.

However, moisture levels are still high, prompting a slight delay in harvest and forcing a 6 percent hike in the price over the past two weeks, according to the firm's latest weekly report.

The Food Reserve Agency (FRA) has already indicated that it would not buy any corn with the moisture content of 12 percent or less to ensure quality of the commodities.

The report said that while awaiting the release of the initial crop estimate and the national food balance sheet, the issuance of export permits for corn remained on hold.

Zambia hinted on Tuesday it would sell its surplus corn to neighbouring countries which have been devastated by droughts or flood last year.