South Africa maize prices soared on Monday due to the lack of rain and forecasts for little or no rain in the country’s maize belt until Thursday or Friday this week.
At 1120, March 2004 white maize was quoted at R1 079 a ton, the highest level since March 14 and up R45 from Friday’s close of R1 034 while March 2004 yellow maize was quoted at R1 090 a ton, up R34 from Friday’s finish.
“Maize is up today on the lack of rain and forecasts for rain for this week. At these price levels, the market is effectively saying that the 2003/04 crop is written off and it is only December! The current price levels are also above import parity, so we should be able to import yellow maize at these levels,” a Johannesburg broker said.
At this stage, there is a chance for rain in some parts of the three key maize belt provinces by Thursday or Friday this week, South Africa Weather Service’s (SAWS) Lee-Ann Clark told I-Net Bridge on Monday morning.
In the Mpumalanga Lowveld and the Limpopo valley, where very little maize is grown, there is likely to be a heat wave this week with temperatures set to reach 38 to 42 degrees centigrade.
In the Mpumalanga Highveld, where maize is grown, temperatures will also be relatively high during and reach low 30 degrees centigrade levels.
“For later in the week, our four forecasting models are providing conflicting information. However, it seems there is likely to be no rain until just before the weekend. There are weather systems in place but there is no rain for the moment,” she added.
“If it doesn’t rain, maize is going a little higher but when it does rain, the calculators are going to come out and the market is going to fall,” the broker added. I-Net Bridge