The production estimate for South Africa’s summer crops over the 2016/17 season has risen 72,47%, due to widespread rains since the start of spring last year.
- Farmer's Weekly
Below is an extract from an article published in Farmer's Weekly on 1 March 2017:
Wandile Sihlobo, head of economic and agribusiness intelligence with Agbiz, said that if the estimates proved accurate, the total summer crop harvest for the current season would be the largest since the 2013/14 season.
“Although this is an encouraging picture, it’s important to note that these are first estimates for the season. We’ll get a much clearer view of the [total summer] crop over the coming months,” he said.
He added, however, that recent indications were that the current summer crop was in fairly good condition throughout South Africa. Moreover, a dry spell after recent weeks of high rainfall would ensure that flooded crops received sunlight.
Sihlobo said that with the first maize estimate approximately 7% higher than market expectations, maize futures prices were likely to come under bearish pressure over the foreseeable future.
“The increases in other summer crops are also likely to result in similar bearish pressure on their futures prices,” he added.
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