South Africas grains prices are softening
South Africa’s 2024–25 grain and oilseed harvest reached 18.74 million tonnes, up 21% year-on-year after the 2024 drought. White maize prices have dropped 24% (R4,071/t) and yellow maize 10% (R3,805/t), easing consumer costs and livestock feed expenses. Maize output is forecast at 15.03 million tonnes—well above domestic needs—ensuring exportable surplus despite some quality issues.
The benefits of the ample grain and oilseed harvest are showing in the prices, although we have some quality issues with white maize and sunflower seed. The white maize spot prices are now down roughly 24% from a year ago (now at R4,071/tonne), while yellow maize prices are down approximately 10% from last year (now at R3,805/tonne).
We will see the benefits of the lower white maize prices at the consumer level in the coming months, and the moderating yellow maize prices continue to help ease the input costs for the livestock and poultry industries. The livestock industry continues to struggle with the foot and mouth disease, and I think any advantage of lower feed costs helps to ease the burden somewhat.
For people who may not have followed these things closely. We had a tough drought in 2024, which led to a poor harvest. This year is a recovery period. South Africa’s 2024-25 grains and oilseeds harvest is 18.74 million tonnes (up 21% year-on-year). There is an annual uptick in all the crops, mainly supported by favourable summer rains and the decent area plantings.
More specifically, South Africa’s maize harvest is now forecast at 15.03 million tonnes, which is 17% higher than the crop for the 2023-24 season. Importantly, these forecasts are well above South Africa’s annual maize needs of approximately 12.00 million tonnes, implying that South Africa will have a surplus and remain a net exporter of maize.
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Source : Agricultural Economics Today
