Domestic Price Warnings

Countries where prices of one or more basic food commodity are at abnormal high levels in main markets.
Price warning level:  High   Moderate [Based on the Indicator of Price Anomalies (IPA)]

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South Africa

11/06/2024

Wholesale white maize grain prices fell from record highs in May 2024

Wholesale prices of white maize grain, principally a food staple, declined in May 2024 following all-time highs in April. The recent decline follows a small upward revision to the white maize production forecast for 2024. Despite this minor upgrade, the 2024 white maize harvest is still forecast to decrease by 25 percent year-on-year, as the El Niño-linked drought sharply cut yield prospects. White maize price trends have diverged from those of yellow maize, which is mostly used as feed, reflecting different harvest prospects for each crop; areas growing yellow maize were less affected by the drought and consequently production is foreseen to only fall by about 13 percent year-on-year. In addition to domestic supply pressure, increased export demand from neighbouring countries, as shortfalls in production are also seen to push up import needs in the subregion, is also expected to maintain upward pressure on prices.