South Africa summer grains planting data reaffirm positive outlook for 2020/21 production season

The latest data in South Africa's agricultural sector reinforce the view that the 2020/21 production season could potentially deliver one of the largest harvests on record This past week, the country's Crop Estimates Committee (CEC) released its first planting estimates data, which show total summer grains plantings for 2020/21 at 4.2 million hectares, up by 6% from the 2019/20 season. This dataset comprises maize (white and yellow), soybeans, sunflower seed, groundnuts, sorghum and dry beans. There is an expansion in most crops, except sunflower seeds, whose plantings declined by 5% year on year (y/y) to 473 300 hectares, which would be the smallest area in nine years. This decline is mainly due to some hectares being shifted to white maize plantings in the western regions of South Africa because of favourable prices. As we have commented in various notes, the weather conditions across South Africa have generally been favourable since the start of the production season in October ...