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Corn output to be cut over drought

Johannesburg - The estimate of corn production  in 2015 would probably to be cut by 0.6%, after a drought earlier this year damaged crops in the continent’s largest grower of the grain, a survey showed.

Local farmers may reap 9.7 million metric tons this season, according to the median of six analysts’ estimates in a Bloomberg survey. That would be the least since 2007 and lower than the April 29 outlook from the Crop Estimates Committee, which will release its forecast on May 26.

The worst drought since 1992 hurt crops in the Free State and North West provinces, which accounted for almost two-thirds of corn output last year, and prompted the nation to import the grain for the first time in almost a year last month.

“The yields are reportedly far below average in many areas of Free State and North West, but irrigation areas are reportedly good and the sentiment within farmers is promising,” Wandile Sihlobo an economist at Grain SA, a growers lobby group, said in an e-mailed response to questions.

Estimates in the Bloomberg survey ranged from 9.28 million tons to 9.83 million tons. Farmers, due to finish harvesting in September, reaped 14.3 million tons in 2014, the most in 33 years.

Local prices of white corn, which is used to make a staple food known as pap, have risen 33% this year, after declining 24% in 2014. The price of the yellow variety, used mainly as animal feed, has risen 12% in 2015.

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