Grain SA revises downwards maize import volumes

27 MAY 2015

Grain SA has revised downwards the maize volumes that SA will have to import this year as reports emerge that local production will be higher than earlier estimated.

The lower the maize volumes that SA has to import the better, given that a weak rand makes imports more expensive, which could in turn keep the trade deficit large.

Grain SA’s revised maize import estimate for the 2015/16 marketing year is 727,000 tons, which is lower than the previous estimate of 753,000 tons. Of the 727,000 tons of maize that needs to be imported, 50,000 tons are white maize and 677,000 tons are yellow maize.

“A large part of the yellow maize imports is expected to supply the coastal markets,” Grain SA economist Wandile Sihlobo said. He also said that as of the 22nd of this month, SA’s 2015 maize imports stood at 98,388 tons -all yellow maize and all from Argentina.

The National Crop Estimate Committee this week revised its forecast for maize production in SA, saying it now expected 9.84-million tons this year -which is 0.79% higher from the previous estimate, but 31% lower than 2014’s crop.

Severe drought in parts of the country earlier this year negatively affected maize crops.

Mr Sihlobo said official data indicated a potential decrease of R6 on maize parity prices, a potential increase of R20 on soybean import parity prices and a potential decrease of R73 on wheat import parity prices.

RDM Newswire

Article sourced from BDlive