July 10 (Bloomberg) -- South African white corn futures gained to the highest in more than a week.
White corn for delivery in December, the most active contract, increased 1.1 percent to 2,313 rand ($230) a metric ton, the highest closing price since June 28, by the midday close on the South African Futures Exchange in Johannesburg. The yellow variety for delivery in September gained 0.6 percent to 2,229 rand a ton.
Corn prices on the Chicago Board of Trade, the global benchmark, swung between gains and losses today. The grain for delivery in December gained as much as 1.1 percent and fell as much as 0.9 percent. Prices rallied 4.2 percent yesterday on speculation hot weather in the U.S. would damage crops. The U.S. Department of Agriculture may pare its forecast for the nation’s harvest tomorrow to 13.983 billion bushels from 14.005 billion bushels last month, according to the average estimate of 20 analysts and trading firms surveyed by Bloomberg.
“There are concerns regarding the weather in America and that’s what extended their gains, that is why we will see an upward movement in our local market,” Benjamin Swanepoel, a trader at Trademar Futures (Pty) Ltd., said by phone from Johannesburg. “The USDA report is expected tomorrow and there are concerns the weather will negatively affect the crop.”
Parts of southern Illinois, the second-largest corn growing state, may see temperatures above 90 degrees Fahrenheit (32 degrees Celsius) today, National Weather Service data show. Areas of the western Midwest and central Great Plains were under a heat advisory, it said.
South Africa is the continent’s largest producer of corn. Meal made from the white variety is a staple food, while yellow corn is mainly used as animal feed.
Wheat for delivery in December gained 0.1 percent to 3,404 rand a ton.
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