South African corn declined to the lowest in more than two weeks as rain continues to fall in growing areas, boosting prospects for next season’s crop. The price in the U.S. also dropped.
Yellow corn for delivery in July, the most active contract, decreased 1 percent to 2,302 rand ($264) a metric ton by the close on the South African Futures Exchange in Johannesburg, the lowest since Nov. 21. The white variety for March delivery fell 0.1 percent to 2,458 rand a ton.
Bothaville in Free State province is partly cloudy and warm with scattered thundershowers today. The area has a 93 percent chance of rain today, 75 percent tomorrow and a 22 percent chance on Dec. 9, the South African Weather Service said on its website. The province produces 40 percent of the country’s grain.
“Much of the areas that needed it have been receiving good rain,” Thys Grobbelaar, an analyst at Klerksdorp, South Africa-based Senwes Ltd., said by phone. “This can lead to good yields and good stocks, so that is why prices are affected negatively.”
U.S. corn for delivery in March fell 0.4 percent to $7.4825 a bushel on the Chicago Board of Trade.
South Africa is the continent’s largest producer of corn, where it is known as maize. Meal made from the white variety is one of the country’s staple foods, while yellow corn is mainly used as animal feed.
Wheat for delivery in March was little changed at 3,740 rand a ton.