The weaker Rand against the US Dollar provided support to the South African grain and oilseed market this week, thus overshadowing the bearish sentiment that stemmed from expectations of a large harvest.
The harvest activity is gaining momentum in the irrigation areas around the country. This is reflected in the volumes of maize delivered to commercial silos in the week ending 18 May 2018, which amounted to 144 563 tonnes, up by 14 percent from the previous week.
There is generally some optimism in the South African maize market following good rainfall received in the past few weeks. Last night, the United States Department of Agriculture (USDA) lifted its estimate for South Africa’s 2017/18 maize production by 200 000 tonnes from last month to 13.2 million tonnes.
South Africa’s wheat import tariff has been revised to R394.85 per tonne, which is a 45% decline from the previous rate of R716.33 per tonne. This new duty was calculated on the 13 February 2017 following an upsurge of the international wheat prices.