South Africa weekly white maize exports, futures dip

17 February 2010, Reuters
URL: http://af.reuters.com/article/investingNews/idAFJOE61F08T20100216

Johannesburg:  South Africa, the continent's biggest maize producer, exported 12,972 tonnes of white maize into southern Africa last week, data showed on Tuesday, while the country's main maize futures ended lower.  The white maize exports were less than the 14,055 tonnes sold in the week before, the South African Grain Information Service (SAGIS) said.

It said South African exports of yellow maize, used mainly for animal feed in southern Africa, were at 3,018 tonnes compared with 2,190 in the week before.

Neighbouring Lesotho bought the bulk of the white maize exported in the week with a purchase of 3,035 tonnes, while most of the yellow maize exports went to Swaziland, which bought 1,097 tonnes of the grain.  Aid agencies say Lesotho -- which recorded a 10 percent drop in maize output last year -- will need to import maize to feed up to 450,000 people who will need food aid before the next harvest in April.

The latest exports have now pushed South Africa's total maize exports for the season so far to 1.33 million tonnes, with two months to go before the end of the maize marketing season, compared with 2.17 million tonnes in the last season.

While exports are likely to be lower this year, traders say the country has had another good exports season, buoyed by a bumper 2008/09 maize crop.  The surplus harvest, along with weaker international prices and movements in the rand, has helped subdue maize futures prices on the South African Futures Exchange over the past year.

The most traded July white maize futures ended 1.02 percent down at 1,167 rand a tonne on Tuesday, while July yellow maize shed 0.4 percent to 1,232 rand a tonne.  White maize for delivery in March also fell, shedding 2.18 percent to 1,121 rand a tonne, and March yellow maize slipped 1.38 percent to 1,218 rand a tonne.