South Africa has harvested a record corn harvest, so it will increase its exports

According to estimates by the South African Ministry of Agriculture and USDA experts, corn production in South Africa will increase compared to the previous season from 17.3 to a record 18 million tons, which will exceed the previous record of 2017 and increase export potential in the 2026/27 MY.

 

The increase in production was facilitated by a slight increase in the area sown to 3.1 million hectares and good weather conditions in the second half of the season. In January, heat and drought negatively affected the development of crops, but abundant rains in February-April allowed for high yields. In addition, new agricultural technologies, modern selection and the use of crop protection products have significantly increased corn productivity in recent years.

 

The large supply of maize, estimated at 20.9 million tonnes on the domestic market in South Africa, including carryover stocks, has led to a 33% decline in domestic prices for white maize and a 23% decline in yellow maize over the past 14 months. Low maize prices will limit the expansion of planting areas next season.

 

Domestic corn consumption will increase to 14.2 million tons, half of which will be used in the food industry and the other half in feed production.

 

According to USDA estimates, a significant production volume will allow South Africa to increase corn exports in the 2026/27 MY compared to the previous season from 2.05 to 3.5 million tons. In the first 10 weeks of the season, the country exported more than 700 thousand tons of corn, of which 64% was purchased by Vietnam.

 

Strong demand from Asian countries and countries neighboring South Africa could support exports, even as competition increases after the start of harvest in the Northern Hemisphere.