Johannesburg - BVG says South Africa's white maize increased by its extended daily limit in Johannesburg as concern persists that the country still requires imports to meet local demand despite recent rains easing the effects of the worst drought in memory.
White maize for delivery in July rose 2.5% to R5 016 a metric ton by midday on the South African Futures Exchange, gaining most since January 15. It has climbed 7.6% in January, a third straight month of increases. Yellow corn for the same delivery month advanced 0.5 percent to 3,526 rand a ton.
While local growers will probably produce 7.44 million tons of both varieties of the grain in the season ending in April, according to the Crop Estimates Committee, the nation may still need to import about 3 million tons of the grain for local supply, said Grain SA. In 2015, the country suffered the lowest rainfall since records began because of the global El Nino weather pattern.
“South Africa still needs to import a lot of maize and this estimate can still change a lot due to weather and also as more accurate information becomes available, said Brink van Wyk, a trader at BVG. “Buyers are aware of this.”
Towns in the Free State produced about 40% of last year’s harvest.
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