Dec. 11 (Bloomberg) -- South African wheat futures dropped to the lowest in seven weeks, tracking the price of the grain in the U.S. Corn also fell.
Wheat for delivery in March, the most active contract, declined 0.6 percent to 3,698 rand ($426) a metric ton, the lowest since Oct. 22 on the South African Futures Exchange in Johannesburg.
Wheat dropped to the lowest level in five months in Chicago before a U.S. Department of Agriculture report today that may show smaller global stockpiles. Russia, the world’s third-biggest wheat exporter last season, cut grain exports by 20 percent this year and is expected to import 2 million tons to 3 million tons in the first half of 2013.
The price of wheat for March delivery, the most active contract, fell 0.9 percent to 8.4150 in early trading on the Chicago Board of Trade.
“The American price is not very competitive and exports of wheat are poor,” Thys Grobbelaar, an analyst at Klerksdorp, South Africa-based Senwes Ltd., said by phone. “Our wheat is down today as we are following the international market prices.”
South Africa is a net importer of wheat and sub-Saharan Africa’s largest producer after Ethiopia.
White corn for delivery in March fell 0.9 percent to 2,413 rand a ton, while the yellow variety for July delivery, dropped 1.1 percent to 2,226 rand a ton.
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