South African corn futures rose to the highest level in more than two months because of insufficient rains in the main growing parts of the country.
White corn for delivery in July, the most active contract, gained 0.1 percent to 2,110 rand ($236) a metric ton, the highest since Dec. 19, by the close on the South African Futures Exchange. The yellow variety declined 0.1 percent to 2,084 rand a ton.
Bothaville in the Free State, where 40 percent of the grain is grown, hasn’t had good rains since last week. While Showers are predicted for that area today and tomorrow, nothing is estimated for March 2 and March 3, according to the South African Weather Service’s website.
“The weather patterns are uncertain,” Andrew Fletcher, an independent trader, said by phone from Kroonstad in the Free State. “Rain is not coming and with this heat, crops are already drying up and dying and yields are severely compromised.”
South Africa is the continent’s largest producer of corn, also known as maize. Meal made from white corn is one of the country’s staple food and the yellow variety is mainly used as animal feed.
Wheat for May delivery increased 0.8 percent to 3,425 rand a ton.
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