Good corn harvest lowers prices in South Africa

South Africa’s maize and oilseed crop forecast for MY 2024/25 is set to grow significantly, with a total of 18.74 million tonnes, up 21% from the previous year. Maize output is estimated at 15.03 million tonnes, up 17% from 2023/24, thanks to favourable summer rains and ample planting. This is well above the country’s annual maize requirement of around 12 million tonnes, providing a surplus for export.

Maize prices in South Africa are easing on the back of a bumper harvest, although there are some quality concerns for white maize and sunflower seeds. According to economist Wandile Sihlobo, spot prices for white maize have fallen by about 24% compared to last year to R4,071 per tonne, while yellow maize prices have fallen by 10% to R3,805 per tonne.

The decline in white maize prices will soon have a positive impact on consumers, while moderate yellow maize prices are helping to reduce feed costs for the livestock and poultry sectors. These sectors continue to face difficulties due to outbreaks of foot-and-mouth disease, and the decline in feed costs is easing some of their burden. The favourable price trends are providing some relief to producers in these sectors.

The previous year, 2024, was difficult due to drought that led to crop failure, but the 2024/25 season has been a period of recovery. The corn surplus allows South Africa to maintain its net exporter status, strengthening its position in the world market.

Tags: corn, crop forecast