South Africa: Grain and Feed Annual
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South Africa is on course to produce a fourth consecutive bumper corn crop in MY 2022/23, which creates a bearish outlook on local corn prices and will limit growth in the area to be planted with corn in MY2023/24. However, South Africa should maintain its status as a net exporter of corn. Local wheat prices fell by more than 20 percent from historical high levels reached in May 2022. As farmers were simultaneously disappointed by a drop in yields realized in the previous season, an upsurge in wheat plantings in MY 2023/24 is unlikely. However, Post forecasts only a marginal rise in wheat imports and flattened rice imports, as there is growing pressure on consumer spending. South Africa is currently experiencing unprecedented power outages, high utility costs, inflation, and rising interest rates. These challenges are likely to limit investment in the processing sector and push consumers to increased consumption of low-cost starches.
