SA maize prices fall further

JOHANNESBURG – South African maize prices maintained their downward march on Friday as scattered showers fell last week in some growing areas with more rains forecast for the weekend.

But traders said if the weekend remained dry then the volatile market would see prices rise sharply this week. “This week’s movements have been on speculation of the weather.Today’s movement were because of rains in eastern Gauteng province and parts of Mpumalanga,” said one trader.The benchmark December white maize futures fell a steep 33 rand or almost four per cent to 816 rand – down over six per cent on last Friday’s closing levels.December yellow maize finished 2,5 per cent lower at 751,60 rand.”There are rains forecast for the Free State this weekend and if they don’t come we could go back to 860 rand very quickly.But if we get good rains the December white maize contract could fall below 800 rand,” said the trader.The South African Weather Service was also forecasting a 30 per cent chance of afternoon thundershowers on Saturday over parts of North West province, another key maize region.Longer-range forecasts show South Africa should get healthy amounts of rain in November, forecasters told Reuters this week.The main planting months for summer maize are usually October and November, when moisture is needed.Sowing is usually completed by mid-December, but can extend as late as January.Planting weather was the main focus of the market since nothing new has emerged about the disputed 2005 harvest.Earlier last week, the South African Grain Information Service said around 9,63 million tonnes of maize have been delivered from the harvest.This is sharply less than the 12,18 million tonnes estimated for the total crop by the government.Officials say deliveries are low because many farmers are storing grain on their farms, waiting for higher prices.-Nampa-Reuters”This week’s movements have been on speculation of the weather.Today’s movement were because of rains in eastern Gauteng province and parts of Mpumalanga,” said one trader.The benchmark December white maize futures fell a steep 33 rand or almost four per cent to 816 rand – down over six per cent on last Friday’s closing levels.December yellow maize finished 2,5 per cent lower at 751,60 rand.”There are rains forecast for the Free State this weekend and if they don’t come we could go back to 860 rand very quickly.But if we get good rains the December white maize contract could fall below 800 rand,” said the trader.The South African Weather Service was also forecasting a 30 per cent chance of afternoon thundershowers on Saturday over parts of North West province, another key maize region.Longer-range forecasts show South Africa should get healthy amounts of rain in November, forecasters told Reuters this week.The main planting months for summer maize are usually October and November, when moisture is needed.Sowing is usually completed by mid-December, but can extend as late as January.Planting weather was the main focus of the market since nothing new has emerged about the disputed 2005 harvest.Earlier last week, the South African Grain Information Service said around 9,63 million tonnes of maize have been delivered from the harvest.This is sharply less than the 12,18 million tonnes estimated for the total crop by the government.Officials say deliveries are low because many farmers are storing grain on their farms, waiting for higher prices.-Nampa-Reuters