SA importing Argentine, Ukrainian yellow maize, orders Mexican white

South Africa, which needs to import millions of tonnes of maize this year because of drought, will source hundreds of thousands of tonnes of white maize in the coming months from Mexico, likely beginning in May, local and foreign traders said.

White maize is the staple source of calories for most South African households but shortages are looming, driving up domestic food prices and inflation.

South Africa is also set to receive 228,400 tonnes of the yellow variety of the grain in the coming days, according to Thomson Reuters’ interactive shipping map.

Domestic maize prices in South Africa are near recently-scaled record highs because of the drought. The government’s Crop Estimates Committee has forecast the crop will be 27 percent lower in 2016 at 7.255 million tonnes.

South Africa consumes around 10 million tonnes of maize annually and so far this marketing season, which ends on April 30, has imported 1.4 million tonnes, around 95 percent of which has been yellow maize, mostly used for animal feed.

South Africa’s corn conundrum stems from the fact that while yellow maize is grown widely grown elsewhere and easily sourced, the white version outside of the region can only be sourced from Mexico and the United States.

The July white maize contract is trading at R4,881 a tonne, near its record of 5,179 rand hit in January. It is currently at a 50 percent premium to yellow maize , which ended Wednesday at 3,260 rand.

Thomson Reuters’ Eikon interactive map, which tracks ships including their cargoes and destinations, shows that six vessels will deliver yellow maize from Argentina to South African ports between now and March 17. One ship with 25,000 tonnes from Ukraine will also be offloading.

 

read full article at: http://www.timeslive.co.za/sundaytimes/businesstimes/2016/03/09/SA-importing-Argentine-Ukrainian-yellow-maize-orders-Mexican-white

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