SA 07/08 maize area seen higher

JOHANNESBURG – South African farmers are expected to plant more maize during the impending 07/08 season, inspired by higher local maize prices, according to a Reuters survey.

An informal poll of eight trading houses showed a widespread expectation of higher plantings as farmers take advantage of higher prices. The Crop Estimates Committee will today release data on the first intentions on planting for the coming season.Farmers are likely to plant 2,87 million hectares of maize this season compared to only 2,634 million ha last season, according to the average of estimates from eight traders, ranging from 2,75 million ha to 3,1 million ha.”Realistically speaking, I think we could see the area close to 3,1 million ha.A lot of our clients say they are going to plant this season and our feeling is that the price action is going to push the acreage higher,” a Johannesburg trader said.Expectations of better weather conditions also played a major part in the traders’ predictions of higher plantings next season.South African farmers have since late 2006 suffered one of the driest spells in years, taking a heavy toll on maize and wheat output for the 2006/07 crop.But traders were optimistic that weather conditions for the coming season would be favourable.The first rains are expected to fall during the first and second weeks of October.”The weather is definitely a very big factor but droughts very seldom come in twos.I doubt that any expectations about a drought would stop farmers from planting,” a second trader said.Supply fears have driven maize prices up this season.Maize prices rallied to above 2 000 rand a tonne earlier this year, spurred mainly by bullish crop forecasts.By 0930 GMT, the most traded December white contract had shed 2,34 per cent to 1 879 a tonne, while yellow maize for the same month was down 2,28 per cent to 1 930 rand.The CEC said in July it expects a harvest of 6,9 million tonnes – about one million tonnes lower than South Africa’s annual demand of about eight million tonnes.That equation has given rise to talk that South Africa might have to import the staple maize crop to make up the shortfall.Some traders however feel the CEC target could be reached.”I think it’s definitely a 6,9 million tonne crop.We’re already close to the six million tonne mark and the question is on access to the remaining 900 000 tonnes and proving that it’s there,” another trader said.Nampa-ReutersThe Crop Estimates Committee will today release data on the first intentions on planting for the coming season.Farmers are likely to plant 2,87 million hectares of maize this season compared to only 2,634 million ha last season, according to the average of estimates from eight traders, ranging from 2,75 million ha to 3,1 million ha.”Realistically speaking, I think we could see the area close to 3,1 million ha.A lot of our clients say they are going to plant this season and our feeling is that the price action is going to push the acreage higher,” a Johannesburg trader said.Expectations of better weather conditions also played a major part in the traders’ predictions of higher plantings next season.South African farmers have since late 2006 suffered one of the driest spells in years, taking a heavy toll on maize and wheat output for the 2006/07 crop.But traders were optimistic that weather conditions for the coming season would be favourable.The first rains are expected to fall during the first and second weeks of October.”The weather is definitely a very big factor but droughts very seldom come in twos.I doubt that any expectations about a drought would stop farmers from planting,” a second trader said.Supply fears have driven maize prices up this season.Maize prices rallied to above 2 000 rand a tonne earlier this year, spurred mainly by bullish crop forecasts.By 0930 GMT, the most traded December white contract had shed 2,34 per cent to 1 879 a tonne, while yellow maize for the same month was down 2,28 per cent to 1 930 rand.The CEC said in July it expects a harvest of 6,9 million tonnes – about one million tonnes lower than South Africa’s annual demand of about eight million tonnes.That equation has given rise to talk that South Africa might have to import the staple maize crop to make up the shortfall.Some traders however feel the CEC target could be reached.”I think it’s definitely a 6,9 million tonne crop.We’re already close to the six million tonne mark and the question is on access to the remaining 900 000 tonnes and proving that it’s there,” another trader said.Nampa-Reuters