South Africa eases a path for possible maize imports from the US
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South Africa’s decision to ease possible maize imports from the U.S. is not necessarily bad. It is a “safety option” in recognition that our white maize supplies are tight. We also face strong demand from broader Southern Africa, whose maize production is down massively because of the drought earlier this year.
Such imports will also depend on whether many American farmers planted white corn. Remember, the biggest white maize producers in the world are South Africa and Mexico. The U.S. and South Americans are big on yellow corn — which is for feed and industrial use.
Still, with all the tight supply issues, we have continued to export maize to the Southern African region to stabilize food supplies. We forecast South Africa’s overall maize exports at 1.9 million tonnes through to April 2025 marketing year (about 1.2 million tonnes is white maize and 700k tonnes is yellow). Over a million tonnes have already been exported, mainly to the Southern Africa region.
So, any possible imports from the U.S. will help ease the maize needs in the coastal areas, and some may be for reexports to the continent. We already have some yellow maize imports from Argentina which have helped our feed industry in the coastal regions massively.
The possible imports would likely be at the end of December through to the first quarter of 2025. This will add downward pressure on maize prices, which have rallied in recent months, with white maize reaching record levels sometime last week.
These challenges are for the near term. We remain optimistic about the new season as farmers continue to till the land across South Africa, and the weather prospects are encouraging. We hope the broader Southern Africa region plants its usual maize area.
Yes, the La Nina rains are delayed by roughly a month. Still, I don't think we could call it off. The La Nina forecasts from various weather organizations remain active.
Listen to the podcast for more insights.
Richard Humphries, Sam Mkokeli and Amanda Murimba produced this podcast.
Such imports will also depend on whether many American farmers planted white corn. Remember, the biggest white maize producers in the world are South Africa and Mexico. The U.S. and South Americans are big on yellow corn — which is for feed and industrial use.
Still, with all the tight supply issues, we have continued to export maize to the Southern African region to stabilize food supplies. We forecast South Africa’s overall maize exports at 1.9 million tonnes through to April 2025 marketing year (about 1.2 million tonnes is white maize and 700k tonnes is yellow). Over a million tonnes have already been exported, mainly to the Southern Africa region.
So, any possible imports from the U.S. will help ease the maize needs in the coastal areas, and some may be for reexports to the continent. We already have some yellow maize imports from Argentina which have helped our feed industry in the coastal regions massively.
The possible imports would likely be at the end of December through to the first quarter of 2025. This will add downward pressure on maize prices, which have rallied in recent months, with white maize reaching record levels sometime last week.
These challenges are for the near term. We remain optimistic about the new season as farmers continue to till the land across South Africa, and the weather prospects are encouraging. We hope the broader Southern Africa region plants its usual maize area.
Yes, the La Nina rains are delayed by roughly a month. Still, I don't think we could call it off. The La Nina forecasts from various weather organizations remain active.
Listen to the podcast for more insights.
Richard Humphries, Sam Mkokeli and Amanda Murimba produced this podcast.