South African Corn Increases on Insufficient Rain Concern
South African corn futures gained for a second day on concern that there won’t be enough rain in the coming days in one of the country’s main growing regions.
Yellow corn for delivery in July, the most active contract, rose 0.3 percent to 2,098 rand ($232) a metric ton by the close on the South African Futures Exchange in Johannesburg. The white variety increased 0.1 percent to 2,188 rand a ton.
Rain has been predicated for today and tomorrow for Bothaville in the Free State, where 40 percent of the nation’s grain is produced. There will be no rain on Jan. 31 and Feb. 1, the South African Weather Service said on its website.
“There are concerns that there won’t be enough rain in the Free State, so that affects prices,” Theo Venter, an analyst at Klerksdorp, South Africa-based Senwes Ltd., said by phone.
Wheat for delivery in March gained 0.3 percent to 3,660 rand a ton.
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