SA maintains bumper 2014 maize forecast

South Africa left its 2014 maize output forecast unchanged on Tuesday (30/09/2014) as good weather helped produce a bumper crop that should contain food prices and give a lift to sluggish growth in Africa’s most advanced economy.

The government’s Crop Estimates Committee (CEC) left its forecast at 14.307 million tonnes, the biggest harvest in over three decades for the continent’s top maize producer.

This was just slightly lower than market expectations of 14.39 million tonnes, according to a Reuters poll of traders conducted last week.

Agriculture is one of the few bright spots in South Africa’s economy with data last month showing the sector expanded almost 5% in the second quarter when GDP overall grew a tepid 0.6%.  Maize is a staple in South Africa, especially for the working class, and the bumper crop is a relief for the country after stocks from last year were depleted by large export commitments, putting pressure on prices and fuelling inflation.

South Africa’s headline consumer inflation measure quickened to 6.4% in August but the central bank has said food price growth is expected to moderate in coming months, easing the burden on lower-income households. - Reuters