South African Corn at Five-Day High on Weaker Rand
South African white-corn futures rose for a third day, the longest streak of gains in more than a month, as the rand weakened against the dollar, raising the cost of imported grains.
White corn for delivery in December, the most active contract, increased 0.3 percent to 2,455 rand ($276) a metric ton by the close on the South African Futures Exchange in Johannesburg. The yellow variety advanced 0.5 percent to 2,509 rand a ton.
The rand declined to the lowest level since Nov. 15, losing 0.9 percent to 8.9170 per dollar by 1:36 p.m. after European finance ministers failed to agree a debt-reduction package for Greece, fueling concern over demand from the euro area, which buys a fifth of South African exports.
“The rand has weakened a bit from yesterday and that is why we have a slight upward move on prices today,” Brink van Wyk, a trader at BVG (Pty) Ltd., said by phone in Johannesburg.
South Africa is the continent’s largest producer of corn. Meal made from the white variety is used as one of the country’s staple foods, while yellow corn is mainly used as animal feed.
Wheat for delivery in March, the most active contract, gained 0.6 percent to 3,751 rand a ton.
To contact the reporter on this story: Tshepiso Mokhema in Johannesburg at email@example.com
To contact the editor responsible for this story: Antony Sguazzin at firstname.lastname@example.org