Agri Hour 30 June Wandile Sihlobo
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As usual on a Tuesday, Wandile Sihlobo, Chief Economist at the Agricultural Business Chamber of South Africa, Agbiz, provides a weekly insert about the latest on the global as well as South African agricultural markets.
He says the high-frequency data on both domestic and global markets reinforced the view that grain prices could be under pressure this year, which in turn could lead to subdued food price inflation. The International Grains Council (IGC) has lifted its estimate for the 2020/21 global maize production from the last monthly estimate to 1.2 billion tonnes. This is the largest harvest on record, with an increase of 5% from the previous season. The downward swing in global maize prices saw a 21% year-on-year (y/y) decline by June 25 this year, with prices trading around US$162 per ton. Low global maize prices are likely going to remain the theme for the rest of the year.
He says the high-frequency data on both domestic and global markets reinforced the view that grain prices could be under pressure this year, which in turn could lead to subdued food price inflation. The International Grains Council (IGC) has lifted its estimate for the 2020/21 global maize production from the last monthly estimate to 1.2 billion tonnes. This is the largest harvest on record, with an increase of 5% from the previous season. The downward swing in global maize prices saw a 21% year-on-year (y/y) decline by June 25 this year, with prices trading around US$162 per ton. Low global maize prices are likely going to remain the theme for the rest of the year.
