> Resources boost JSE

> MTN, Vodacom give in

> Quiet rand tracks euro

> Nedbank scoops two awards

> SAA en route to Africa

> Cell talks break down

> Construction takes a dip

> JSE stays up

> Rand tracks greenback

> Rand follows dollar

Today, 22 November 2009

› SACP attacks Malema

› Meteor 'flash' in Gauteng

› Malema attack 'racist'

› Govt settles with Pikoli

› Will cops play brokers?

Yesterday, 21 November 2009

› SACP attacks Malema

› Match-fixing stuns Europe

› JZ hails Miss World effect

› Henry offers replay

› No armchair ride for Boks

South African milk producers were on Tuesday warned of a possible rise in grain costs that could severally affect them.

Managing director of the Milk Producers' Organisation Etienne Terre'Blanche said producers must manage their grain purchases carefully over the next six months.

"Grain prices may possess considerable upward potential and milk producers must make sure that they are not caught unawares by prices fluctuations."

MPO economist Koos Coetzee said October 2008 futures contracts for yellow maize were currently trading at R1890 per ton, compared with an export parity of R1660 and import parity of R2771 per ton.

Coetzee said several factors can cause prices to rise.

"The sharp increase in input costs will result in less maize being planted, higher sunflower and soy prices would result in larger plantings of the these crops."

Nevertheless, Coetzee said maize producers presently still have large supplies in farm and other silos.

"Milk producers could (also) enter into agreements with maize producers who have not yet traded their grain."

Terre'Blanche said milk producers who were currently under pressure as a result of lower producer prices would find it difficult to survive should grain prices suddenly rise.

"It would be sensible for milk producers to safeguard themselves against possible price increases," said Terre'Blanche.

Sapa