South African Corn Falls on Stock Increase, U.S. Price Decline

South African white corn fell for a fourth day on speculation there is sufficient local supply of the grain and after the price in the U.S. had the longest losing streak since March 2011.

White corn for delivery in December, the most active contract, decreased 0.3 percent to 2,472 rand ($285) a metric ton by the close on the South African Futures Exchange in Johannesburg, the lowest closing level since Oct. 17. The yellow variety declined 0.5 percent to 2,530 rand a ton.

Corn stocks in South Africa, the continent’s biggest producer, rose 9.3 percent in September from a year earlier, the nation’s grain information service said on Oct. 24. Prices slid 3.1 percent last week on the Chicago Board of Trade and are down 13 percent since concern about drought in the U.S. sent the grain to a record $8.49 a bushel on Aug. 10. An increase in corn output in South America, following dry weather in the past season, may reduce prices in the next 12 months, Credit Suisse AG analysts said in a report today.

“There is abundant supply of corn at the silos,” Thys Grobbelaar, an analyst at Klerksdorp, South Africa-based Senwes Ltd., said by phone. “Our market is not anxious about the supply of maize, not unless they export a lot of white corn.”

Corn gained 0.8 percent on the Chicago Board of Trade today on signs that a slump in prices may have boosted demand for supplies from the U.S., the world’s largest grower.

South African wheat for delivery in December fell 0.4 percent to 3,613 rand a ton.

To contact the reporter on this story: Tshepiso Mokhema in Johannesburg at tmokhema@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net