South African maize farmers, the biggest producers of the grain on the continent, delivered more maize to silos last week, edging total maize submissions this season closer to the key 10 million tonne mark. Maize futures closed flat on Wednesday as bullish sentiment from international prices was offset by a slightly firmer currency.
Maize deliveries to silos rose to 9.66 million tonnes in the week to August 14, up from 9.30 million the week before, the South African Grain Information Service (SAGIS) said on Wednesday. White maize deliveries rose to 5.53 million tonnes from 5.29 million, while yellow maize submissions increased to 4.13 million tonnes from 4.01 million, SAGIS said on its website www.sagis.org.za It said farmers brought 365,000 tonnes of maize to market last week, less than the 421,000 tonnes they submitted the week before.
The deliveries were slightly more than the 338,000 tonnes that producers submitted during the same week last year. South Africa's government expects another bumper harvest of about 11.6 million tonnes this season, following the hefty 12.7 million tonnes crop reaped in 2007/08. Although this year's crop would be slightly lower, it would still be more than annual consumption of the staple grain of between 8-9 million tonnes.
The big crop would also be a boon for South Africa's neighbours, which import most of their additional maize requirements from South Africa. Traders say anticipation of another large harvest has helped keep maize prices on the South African Futures Exchange quite low this season, but the market has mainly taken its cue from international prices and the rand currency. The main December maize white maize futures ended 0.19 percent higher at 1,489.8 rand per tonne on Wednesday, while yellow maize for delivery in the same month was unchanged at 1,389 rand a tonne.
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