A significant number of producers decided not to trade maize because of this year’s low maize prices and elected to keep it in storage, said Albe Mouton, director of grain trader Mirador Agri.
The October futures contract price for white maize is R1 884/t and R1 895/t for yellow maize.
“The stored grain will have to come in to the market at some time to redeem production credit,” said Mouton. “That will push the already low prices down even more. Indications are that we can expect the stored grain to be traded by December 2014.”