THE upward trajectory in the maize price continued despite global food prices falling to a six-year low last month. A crippling drought has affected maize output and will see the country importing the staple to plug a shortfall. Declines in dairy and vegetable oil prices drove the United Nations Food and Agriculture Organisation’s food price index to 164.6 points in July — the lowest in six years. But maize and wheat prices rose for the second consecutive month as unfavourable weather persisted in the northern hemisphere. Grain South Africa estimates that the country will need to import 766,000 tonnes of maize this year because of the drought, and higher global prices for the grain will make this option costly as the rand continues to take a beating. Grain South Africa economist Wandile Sihlobo said domestic white maize spot prices were 81% higher than a year ago, while those of yellow maize were 47% higher. Although rising maize prices and a weak rand do not bode well for South Africa, there are data suggesting that the country is benefiting moderately from lower global food prices.

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