Corn Declines to 10-Month Low on Expected Surplus, Drop in U.S.

South African white-corn futures fell the lowest in more than 10 months as prices for the grain in the U.S. dropped and on speculation Africa’s biggest producer of the grain will grow a surplus crop this season.

White corn for delivery in July, the most active contract, declined 1.2 percent to 1,860 rand ($209) a metric ton by the close on the South African Futures Exchange in Johannesburg. That’s the lowest for a most active contract since March 30. The yellow variety for delivery in the same month decreased 1 percent to 1,911 rand a ton.

Corn futures for March delivery retreated for a sixth day on the Chicago Board of Trade. South African farmers probably planted 2.78 million hectares (6.9 million acres) of corn, or 3 percent more than the previous season, the Crop Estimates Committee said Jan. 24.

“The U.S. corn prices have decreased a lot,” Brink van Wyk, a trader at BVG Pty Ltd., said by phone from Pretoria. “It really looks like we are producing a surplus and that means prices will go down.”

Yellow corn is mainly used as animal feed in South Africa while the white variety is a staple food.

Wheat for delivery in March gained 0.5 percent to 3,533 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

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.