June 25, 2008

South Africa raises 2007-08 corn output forecast

South Africa is likely to lift its 2007/08 forecast for corn production to 11.5 million tonnes from the 11.3 million tonnes predicted last month, according to an I-Net Bridge survey of six traders.

The acreage is largely expected to remain unchanged from the previous estimate of 2.80 million hectares, which is 9.8 percent larger than the 2.552 million hectares planted last season.

Although only about a fifth of the season's crop has been harvests, yield volumes and quality are looking good, one Free State-based trader said.

Favourable weather conditions since September last year are expected to have boosted yields significantly, with some traders expecting an average yield of 4.5 tonnes per hectare.

The Department of Agriculture's Crop Estimates Committee is expected to release its fifth summer production forecast Wednesday at 1230 GMT.