The Xchange Platform Agricultural Market Viewpoint with Wandile Sihlobo

The 2024 mid-summer drought continues to weigh on the summer crop harvest

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South Africa is on its eighth summer grain and oilseeds production forecast for the 2023-24 season. There are two more monthly reports to follow. Given that we are at the tail end of the season and will soon be in the optimal planting window for the 2024-25 production season from mid-October, we thought there would be no major revisions of the production figures at this late stage.

But this has not been a typical season, and the lower producer deliveries we have been observing over the past few weeks are not only a function of on-farm storage but a poor harvest. Indeed, we struggled with a mid-summer drought in February and March, undermining crop yield potential in various regions.

On October 26, South Africa's Crop Estimates Committee lowered again the 2023-24 summer grain and oilseeds production estimate by 2% from August to 15,45 million tonnes. The major downward revision was in maize, sunflower seed, and groundnut harvest. The 2023-24 summer grain and oilseeds harvest is now down 23% from the previous season.

Listen to the podcast for more details.

Podcast production by Richard Humphries and Sam Mkokeli

My writing on agricultural economic matters is available on my blog:
https://wandilesihlobo.com/
30 Sep 2024 English South Africa Investing · Food

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