South Africa May Forecast Smaller Corn Harvest, Survey Shows

South Africa, the biggest corn producer on the continent, may forecast a smaller crop of the grain in the 2010-11 season, a survey showed.

The government may say farmers will reap 11.5 million metric tons, down from the 12.82 million tons harvested in the prior season, according to the median estimate of 14 traders surveyed by Bloomberg. Forecasts ranged from 12.8 million tons to 11 million tons.

The government’s Crop Estimates Committee is scheduled to release its first assessment of the harvest tomorrow at 3:30 p.m. Johannesburg time.

White corn for July delivery dropped by the maximum daily limit of 80 rand, or 4.8 percent, to close at 1,574 rand ($221) a ton on the South African Futures Exchange today. Meal made from the grain is the country’s staple food.

Yellow corn for July delivery fell 80 rand, or 4.7 percent, to 1,610 rand a ton. The grain is used mainly as animal feed in South Africa. The U.S. and Argentina are the world’s biggest corn exporters.

(Source: http://www.bloomberg.com/news/2011-02-23/south-africa-may-forecast-smaller-corn-harvest-survey-shows.html)