MarketsFarm — South Africa is reported to be well on its way to producing another 15 million-plus-tonne corn crop in 2022-23, according to the U.S. Department of Agriculture (USDA) attaché in Pretoria.
However, it will be far less than the USDA’s current estimate of 17.3 million tonnes.
Nevertheless, if the attaché’s forecast were to hold, it would be an increase of nearly 1.7 per cent compared to the previous year and mark the fourth consecutive year of South Africa producing more than 15 million tonnes of corn.
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USDA ranks South Africa among the world’s top corn producers, roughly on par with Russia.
The attaché projected planted area in South Africa to remain relatively steady at 6.4 million acres as high crop input costs, such as fertilizer, have deterred farmers from expanding their corn.
An increase in soybean acres, at about 2.3 million, has also impeded corn planting. Soybeans are projected to account for 20 per cent of the country’s summer rainfall field crops, up five-fold in the last 20 years.
While soybeans have cut into corn acres in South Africa over that time, the attaché pointed out corn yields have doubled over the same 20-year period. The report chalked that up to the use of genetically engineered seed, more precise farming techniques and more reduced/zero-tillage methods.
Corn exports are expected to increase as well, from 2.2 million tonnes in 2021-22 to 2.5 million in 2022-23. That said, exports will still be notably lower than the 3.7 million tonnes shipped overseas in 2020-21. Among South Africa’s top customers are Taiwan, Japan, Vietnam, South Korea and Botswana.
The attaché projected 2022-23 ending stocks at 1.57 million tonnes, down sharply from USDA’s call of 2.68 million. That’s due to smaller beginning stocks and reduced production.
