South African maize deliveries rise

JOHANNESBURG – Deliveries from the 2005 South African maize harvest rose slightly last week to around 9,65 million tonnes, official data showed yesterday.

Shipments for the week to October 14 increased from 9,63 million tonnes reported for the previous week by the South African Grain Information Service (SAGIS). The data was launched several weeks ago to try to clear up confusion surrounding the size of this year’s crop.SAGIS has cautioned that the delivery information was sourced from role-players such as traders and processors and has not been verified.The deliveries are sharply less than the 12,18 million tonnes estimated for the total crop by the government, leading some to speculate about a smaller crop.Others say that many farmers are holding onto their grain and storing it themselves to save money while waiting for higher prices.The concern about a possible smaller than expected crop has boosted white maize prices over the past few months by around 30 per cent.The estimates committee said last month farmers were likely to plant 42 per cent less land with maize, but many traders say that the rally in prices might mean that more planting will actually take place.Benchmark December white maize futures closed 0,59 per cent higher to 846 rand per tonne, recovering from losses earlier in the session.Traders said the market was hit by profit-taking following healthy rains on Tuesday, but prices rebounded due to expectations of a softer rand by speculators.”We had a good rain yesterday and I think it’s just profit-taking ahead of the weekend.Then the rand moved, and they’re expecting a weaker rand and to profit from that,” a trader said.December yellow maize futures fell 11,5 per cent to 777 rand per tonne, failing to recover like white maize.”You don’t have that much speculator interest in the yellow, it is pretty illiquid,” the trader added.- Nampa-ReutersThe data was launched several weeks ago to try to clear up confusion surrounding the size of this year’s crop.SAGIS has cautioned that the delivery information was sourced from role-players such as traders and processors and has not been verified.The deliveries are sharply less than the 12,18 million tonnes estimated for the total crop by the government, leading some to speculate about a smaller crop.Others say that many farmers are holding onto their grain and storing it themselves to save money while waiting for higher prices.The concern about a possible smaller than expected crop has boosted white maize prices over the past few months by around 30 per cent.The estimates committee said last month farmers were likely to plant 42 per cent less land with maize, but many traders say that the rally in prices might mean that more planting will actually take place.Benchmark December white maize futures closed 0,59 per cent higher to 846 rand per tonne, recovering from losses earlier in the session.Traders said the market was hit by profit-taking following healthy rains on Tuesday, but prices rebounded due to expectations of a softer rand by speculators.”We had a good rain yesterday and I think it’s just profit-taking ahead of the weekend.Then the rand moved, and they’re expecting a weaker rand and to profit from that,” a trader said.December yellow maize futures fell 11,5 per cent to 777 rand per tonne, failing to recover like white maize.”You don’t have that much speculator interest in the yellow, it is pretty illiquid,” the trader added. – Nampa-Reuters