We have
completed the 2024-25 marketing year for maize in South Africa, which ended in
April. We are now at the start of the 2025-26 marketing year. This new
marketing year corresponds with the 2024-25 production season.
The new
2025-26 marketing year starts with much-needed sunshine after weeks of heavy
rains. Fortunately, the weather forecasts through the end of the month remain
encouraging, showing clear skies over the summer cop growing regions of South
Africa.
May 23,
however, could bring light showers to the country's southern regions. These may
cover parts of the Eastern Cape, the southern regions of KwaZulu-Natal, Western
Cape, and perhaps even certain areas of the Northern Cape (see the coloured
parts of the South African map in the forecasts here).
Another
key point worth highlighting about the start of the 2025-26 marketing year for
maize is that if you doubted how late the beginning of the season was, you will
now see from the volumes of maize the farmers are starting to deliver to the
silos. For example, in the first week of May, the South African farmers
delivered 66 633 tonnes of the new season maize to the commercial silos. This
was the first delivery for the new season. If you compare this with the overall
volume delivered in the first week of the previous season, the volumes are down
79%.
And
yes, we had a poor crop in the 2023-24 production season (corresponding with
the 2024-25 marketing year that ended in April 2025). But farmers planted
relatively early in the typical period, and were mainly hit by the drought in
February. Thus, the crop could be harvested on time last year.
We
planted roughly a month behind schedule this season because of the late rains.
And yes, when we finally received the rain, it helped – a lot; until it didn't
(when we started to worry about the crop quality in April). The ideal path
could have been for the rain to stop by the end of March so the crop could
mature well.
At the
moment, we continue to worry that some regions will likely have crop quality
issues. We will follow farmers' views closely and listen to our friends at
Grain South Africa to gauge the quality issues as the farmers continue to
harvest.
Still,
the main point remains: we are in a recovery season. South Africa's 2024-25
maize harvest is estimated at 14.66 million tonnes, up 14% year-on-year,
primarily benefiting from expected annual yield improvements.
Importantly, these forecasts are
well above South Africa's annual maize needs of about 11,8 million tonnes,
which implies that South Africa will have a surplus and remain a net exporter
of maize.
So,
when you see lower "producer deliveries" data for maize and soybeans,
don't read them as a signal for a worrying season or that we may have
overstated the crop. These deliveries will mainly show that the season is late.
As the weather remains favourable, we may see a volume pick-up as the field
activity increases.
Still,
I suspect the increase in activity may be in the last week of May or June. The
farmers will be at the NAMPO festival next week, which means another quiet week
in the grain and oilseed fields in South Africa.
I will
also be at NAMPO sometime next week. And yes, my 'Talking Head" is in one
of the Nation in Conversation Panel discussions – someone has to talk while
others are working, keeping life interesting after all.
n Wandile Sihlobo is the chief
economist of the Agricultural Business Chamber of South Africa
0 COMMENTS
LEAVE A COMMENT