Crops of corn Afgri forecasts, oilseeds

Afgri, which handles about 31 percent of grain South Africa, yesterday said that the harvest of this year's summer corn and oilseeds was likely to be "above average" after the harvest last season.

"Recent rainfall and improved international prices on the back of low international stocks have restored a degree of optimism for the sector," the company said.

"Too much rain in South Africa caused very little damage so far."

While farmers have a cautious approach for the season after last year's bumper harvest, the total area planted expected to be comparable as farmers replace corn with soybeans and sunflowers according Afgri.

However, South Africa could produce the smallest corn crop in four years this season, the crop estimates Committee said last week, quoting the lowest prices.

The culture could refuse the 14 percent to 11. 04 million tonnes from 12.82 million tonnes harvested last year, he said. The sunflower seed harvest might be 65 percent larger 808 420 tons and farmers could produce 729 050 tonnes of soya beans, 29 percent more than last year, he said.

White maize for July delivery, contact more active on a Futures Exchange yesterday, fell 1 percent to 636 R1 ton.

Yellow corn for delivery in the same month fell 0.7 percent to 690 R1 ton.

Afgri predicted the price of White maize to set to R1 R1 400 to 800 a ton in the coming months, according to Executive Director Chris Venter. Expected that yellow maize prices on the Futures Exchange SA to reach R1 R1 500 to 900 a ton.

Soy beans for may delivery rose by 0.5 percent to 462 R3 a ton, while sunflower seeds for delivery in the same month rose 1. 1 percent to close at 240 R4 a ton.

Afgri said that earnings per share from its title operations decreased 1.3 percent in the six months to December.

Afgri parts fell 1.6 percent to close at R7.05 on JSE yesterday.

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