Senwes Scenario February / March 2016 | Page 39

CO L UMN The international maize situation: International maize price: The American corn price traded at a level of $7/bushel for an extensive period of time after the 2012 drought. Due to the reasons already discussed and high levels of carry-over stock globally, the price is declining and corn is trading at levels of $3.7/bushel at present. It is expected that the international price will linger at this level, unless a drought occurs over large parts of the Northern Hemisphere this coming season. LOCAL: White maize: The white maize price increased from R1 600/ton during the second half of 2014 and is at a level of R5 000/ton at present. The main reason for the above was the 2014/15 drought, which was followed by an exceptionally dry 2015/16 (Graph 4). The rand also depr X