South Africa seen lifting corn estimate 1.7%

South Africa, the biggest corn producer on the continent, may raise its forecast for the crop to 11.39 million metric tonnes when the Crop Estimates Committee announces its projection on September 26. Estimates from five traders surveyed by Bloomberg ranged from 10.92 million to 11.4 million, with the median seeing output increase from the committee’s previous forecast of 11.2 million tonnes. Wheat production may be unchanged from the committee’s last projection for 1.76 million tonnes, according to the survey.

South African corn prices fell today (September 18) as rains in the key growing province of Mpumalanga and forecasts for rain in Brazil and Argentina boosted prospects for supply of the grain.Yellow corn for December delivery, the most active contract, declined 80 rand, or 3.2 per cent to 2,402 rand a tonne by the close on the South African Futures Exchange in Johannesburg. That was the biggest drop since March 22. White corn for the same month fell by the same amount to 2,406 rand a tonne, the biggest decline for a most active contract since April 16. Wheat for December delivery declined 1.5 per cent to 3,485 rand a tonne. A meal made from white corn is South Africa’s staple food and yellow corn is mainly used as animal feed.