2020 maize output seen lower than previous forecast

South Africa’s 2020 maize output is likely to be lower than previously expected due to the impact of late rains on the quality of the crop, according to a Reuters survey of estimates from five analysts and traders.

The Crop Estimates Committee (CEC) is expected to forecast 2019/2020 maize production at 15.271 million tonnes, down 1.71% from the 15.537 million tonnes it forecast in August.

“Due to the late rains, the quality of the white maize, which was Grade 1, downgraded,” said Ruan Erasmus, a trader with VKB.

The harvest is expected to consist of 8.877 million tonnes of white maize, which is used mainly for human consumption, and 6.493 million tonnes of yellow maize used mainly in animal feed.

The maize harvest is still expected to be 35.4% higher than the 11.275 million tonnes harvested in the 2018/2019 season when dry weather conditions hurt yields.

The CEC will provide its eighth production forecast for the 2019/2020 season on Tuesday, September 29.

Source: moneyweb.co.za