South African maize prices rose the most in more than five weeks after export figures showed the country shipped the most yellow maize in more than two years, raising concern that local stocks are insufficient to meet demand.
The yellow variety for delivery in July, the most active contract, jumped by the limit of R80 rand, or 3.6%, the most since April 30, to R2 292 a metric tonne by the close on the South African Futures Exchange. White maize for delivery in the same month gained 3.6% to R2 321a tonne.
South Africa shipped 86 460 tonnes of yellow maize in the week ended on May 31, the most since the five days ended on September 24 2010, when it exported 94 235 tonnes, Pretoria-based South African Grain Information Service said on its website yesterday.
“Although the export figures are looking good and there is a demand for our crop, there is still uncertainty over the production of our maize,” Andrew Fletcher, an independent trader, said by phone from Kroonstad in the Free State province. “Given the fact that we are still uncertain about our crop size, stocks could still get tighter with more exports.”
South Africa’s Crop Estimates Committee on May 23 reduced its forecast for maize output this season by 1.1% to 11.4-million tonnes as dry weather curbs production. The country, which is the continent's biggest producer of the grain, harvested 11.8-million tonnes last year. This was more than the 10.4-million tonnes produced in the 2011 season and less than 2010’s 12.8-million tonnes, the biggest crop since 1982. Meal made from the white variety is a staple food while yellow corn is mainly used as animal feed.
Last week’s shipment included 54 124 tonnes to Taiwan, the most to that country since the 2011/12 season, when 161 550 tons were exported.
Wheat for delivery in July rose 2.1%, to close at R3 625 a tonne.