Corn and wheat prices in South Africa dropped by the maximum daily limit set by the South African Futures Exchange as U.S. prices extended their decline.
White corn for July delivery, the most active contract on the South African Futures Exchange, slumped by 100 rand, or 5.6 percent, to close at 1,675 rand ($248) a metric ton in Johannesburg. Meal made from the grain is the country’s staple food. Corn futures in Chicago sank 5.1 percent.
U.S. farmers have planted 92.282 million acres of corn this year, 1.8 percent more than projected by analysts in a Bloomberg News survey and the second-highest planting since 1944, the Department of Agriculture said yesterday. Stockpiles as of June 1 were 3.67 billion bushels, 12 percent higher than forecast.
Yellow corn for July delivery dropped 109 rand, or 6.2 percent, to 1,655 rand a ton in Johannesburg. The grain is used mainly for animal feed in South Africa.
Wheat for December delivery declined 100 rand, or 3.6 percent, to 2,689 rand a ton. The grain fell 4.1 percent during the week.