June 21, 2006

South Africa's fifth 2005/06 corn estimate cut to 5.998 million tonnes

South Africa's National Crop Estimates Committee said Tuesday it had cut its estimate of the country's 2005/06 corn crop by 5,000 tonnes to 5.998 million tonnes from 6.003 million tonnes in May.

In its fifth estimate for the season, the committee said it left its white corn estimate unchanged at 3.62 million tonnes, but cut its yellow corn estimate by 5,000 tonnes to 2.38 million tonnes.

Due largely to a sharp reduction in corn plantings to about 1.57 million hectares from 2.81 million hectares the previous season, South Africa's 2005/06 corn crop is expected to be one of the smallest on record and sharply lower than the 11.45 million tonnes produced in the 2004/05 season.

The strength of the rand against the US dollar and a large stock overhang from last season are seen as major reasons for the big reduction in corn plantings for the current season.

The committee left its soybeans estimate unchanged at 390,245 tonnes from May, and will announce its first area estimate for 2006/07 winter crops in July.