industry news - SAPA

SAPA STATISTICS
This is a summary of a report. The complete version is available online at http://www.sapoultry.co.za/statistics.html
All forecasts of future feed ingredients and finished feed prices are based on the opinion of an independent feed
consultant contracted to SAPA. These forecasts are for guideline purposes only and SAPA does not, in any way,
warrant that these predictions will be realised. SAPA therefore cautions any user of this information to treat it in an
appropriate manner.
This report refers to circumstances taken into account at the writing of this report at middle February 2011.
The price of maize has been very volatile in the last 3 months and has been following the export parity value which was
mainly influenced by big volatilities in the International market and the weakening of the Rand against the US Dollar from
about R6,70 to R7,30. Currently we are still trading well below export parity and are due for a correction, but not before we
get rid of the big surplusses and this could be delayed as the current crop for 2011 looks very good. The main reasons for the
latest increase in CBOT have been a smaller crop in Argentina because of drought, huge imports by China and increased
usages in Ethanol production. Currently maize is trading at about $7.00/bushel for March 2011.
Exports of surplus SA maize has been very slow, mainly because of the logistical problems experienced to get the maize to
the harbour in time and very short slots to load the ships. There is strong talk that maize will be exported out of East London.
This will give us an exportable capacity of between 200 000 and 250 000 mt maize. First white maize shipments have gone to
Korea in February 2011.
Kommoditeit
The inland (Randfontein) yellow maize price for February 2011, at R1 710,00 per ton, increased by 46,8% on a year to year
basis. The coastal (Pietermaritzburg) yellow maize price for February 2011, R1 770,00 per ton. On a year to year basis the yellow
maize spot price at the coast increased by 44,5%. The projected potential increase from February 2011 to July 2011, with
assumptions in mind, are 3,68% inland and 3,56% at the coast.
10 | MARCH 2011 PLUIMVEE POULTRY BULLETIN