South African yellow corn dropped to the lowest in more than a year as harvesting advanced.
Yellow corn declined 1.2 percent to 2,057 rand ($199.69) a metric ton, the lowest settlement for a most-active contract since Feb. 26, 2013, by the midday close on the South African Futures Exchange. The white variety fell for a second day to 1,915 rand a ton, the lowest since Aug. 2, 2011.
“It is a case of selling pressure made worse by the size of the crop, the biggest in many years,” Brink van Wyk, a trader at Pretoria-based BVG, said in an e-mailed response to questions.
South Africa, the biggest producer of corn on the continent, may have an output of 13.03 million tons this season, the Crop Estimates Committee said on April 24. That would be the biggest since 1981 when the nation produced 14.4 million tons. Meal made from white corn is one of the country’s staple foods and the yellow variety is mainly used as animal feed.
“Big crops always lead to lower prices; expect corn prices to remain under pressure,” Van Wyk said.
Wheat fell 0.2 percent to 3,980 rand a ton.
To contact the reporter on this story: Tshepiso Mokhema in Johannesburg at email@example.com