South Africa currently has a 2-million-ton grain surplus, but white and yellow maize futures have been rising globally.
Poultry prices in South Africa are likely to rise 15% by the end of 2011 on increased input costs, in spite of a current grain surplus, according to Kevin Lovell, chief executive of the Southern African Poultry Association.
The country currently has a 2-million-ton surplus of grain, but white and yellow maize futures, which Lovell said follow the U.S. pricing structure, have been rising. SA Futures Exchange white maize prices for July increased to ZAR 1,675 (US$246.99) a ton in May 2011, from ZAR 1,140 (US$168.10) in May 2010 — a 32% increase. The July contract for yellow maize rose by 31% to ZAR 1,720 (US$253.62) a ton from ZAR 1,190 (US$175.47) in May 2010.
According to experts, the surplus will still allow South Africa prices to remain lower than those of other countries who must rely on grain imports for their poultry feed.
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