South African Corn Rises to Three-Week High on U.S. Price Gain
South African corn rose to the highest in three weeks following a second day of increases in the price of the grain in the U.S., the biggest producer.
White corn for delivery in December, the most active contract, increased 0.4 percent to 2,490 rand ($281) a metric ton, the highest since Nov. 5, by the close in Johannesburg. Contracts on the grain for July delivery rallied 2.9 percent, the most since Oct. 4 to 2,450 rand a ton. The yellow variety gained 0.4 percent to 2,550 rand a ton.
Corn on the Chicago Board of Trade climbed as much as 1 percent to $7.57 a bushel today, the highest since Oct. 31
“The Chicago prices went up a few cents and that is why our prices look like this,” Brink van Wyk, a trader at BVG (Pty) Ltd., said by phone from Johannesburg. Longer-dated contracts climbed “due to the lack of rain in the main growing regions of the North West,” he said. “The rain we are experiencing now is below average and we need at least 50 milliliters (2 inches) just to get going and so far, that hasn’t come.”
No rain has been forecast for Delareyville, one of the main growing areas in South Africa’s North West province, until Nov. 30, the South African Weather Service said on its website.
The nation 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 declined 0.3 percent to 3,778 rand a ton.
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