South African White Corn Falls to Two-Month Low as Demand Drops

South African white-corn futures fell to the lowest in more than two months as the price of the grain in the U.S. retreated after a report showed demand for the grain from the world’s biggest exporter slowed.

White corn for delivery in March, the most active contract, declined 0.9 percent to 2,298.80 rand ($271) a metric ton, the lowest since Sept. 28, by the close on the South African Futures Exchange in Johannesburg. The yellow variety for July delivery fell 1.4 percent to 2,150 rand a ton.

Corn decreased for a third day on the Chicago Board of Trade, reaching $7.1925 a bushel, the lowest since Sept. 27. As of Dec. 6, corn sales for delivery before Sept. 1 fell 46 percent to 12.488 million tons from a year earlier, the lowest since the U.S. Department of Agriculture began reporting the data in 1990, USDA data show.

“There are slower-than-expected export sales in the U.S. and because we follow them, it has put pressure on our prices,” Benjamin Swanepoel, a trader at Trademar Futures (Pty) Ltd., said by phone from Johannesburg.

In South Africa, white corn is mainly used as one of the country’s staple foods, while the yellow type is used as animal feed.

Wheat for delivery in March, increased 0.3 percent to 3,595 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

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