Maize exports are four times higher than 2004
September 27, 2005
By Peter Apps
Johannesburg - Total South African maize exports for the marketing year to date were four times higher than at the same time last year, official data showed yesterday, but traders said rising prices would see a fall in demand.
In the trading year from May to the end of August, South Africa had exported 840 000 tons of maize against only 202 000 tons at the same time last year, the SA Grain Information Service (Sagis) said.
"We're no longer priced for exports to Asia. I think we'll probably be losing some business to Zambia and Malawi as well," one trader said.
Last week, grain traders said Japanese buyers had cancelled a port slot for exporting 70 000 tons of South African yellow maize on rising prices, and the UN World Food Programme warned it might look elsewhere for its southern African purchases if prices rose.
Malawi had also sourced some maize from Tanzania instead of South Africa as prices rise, traders said. Yesterday, the December white maize closed down R6 at R826 a ton - R200 higher than its July levels - while the equivalent yellow maize contract closed up R4 at R752 a ton.
Prices have been rising solidly on fears that farmers - who say they cannot break even until they get at least R1 000 a ton - might plant less, as well as worries the 2005 harvest might be less than expected.
Last week, SA's Crop Estimates Committee said it was standing by its estimate of a 12.18 million ton crop, but the Sagis figures showed the country's unused maize stocks stood at only 8.9 million tons at the end of August, up a touch on 8.4 million tons at the same time last year.
Sagis has recently begun publishing weekly delivery figures that show 9.39 million tons have been delivered so far this year - worrying some in the market that the crop might be overstated.
- Reuters
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