08.07.2016

Abnormally high maize prices are temporary

Farmers must improve how they plan the next season’s buying, production and marketing strategies to minimise risks. There are growing concerns about the outlook of South Africa’s agriculture due to a number of macro-level risk factors. - Moneyweb 

There are growing concerns about the outlook of South Africa’s agriculture due to a number of macro-level risk factors, not least of which is the current 2015/16 drought.

However, the International Grains Council (IGC) reminded us that droughts are usually interspersed with several good production seasons, when it released its monthly Grain Market Report (GMR) on July 1 2016. The July GMR gives a forecast of the 2016/17 production season and it is quite encouraging that South Africa’s 2016/17 maize production is forecast to increase significantly by 84% year-on-year (y/y) to 12.9 million tons. The IGC’s estimate is based on the assumption that climatic conditions could improve following two seasons of consecutive drought.  Read more