Corn Declines to 10-Month Low on Expected Surplus, Drop in U.S.Tshepiso Mokhema
South African white-corn futures fell the lowest in more than 10 months as prices for the grain in the U.S. dropped and on speculation Africa’s biggest producer of the grain will grow a surplus crop this season.
White corn for delivery in July, the most active contract, declined 1.2 percent to 1,860 rand ($209) a metric ton by the close on the South African Futures Exchange in Johannesburg. That’s the lowest for a most active contract since March 30. The yellow variety for delivery in the same month decreased 1 percent to 1,911 rand a ton.
Corn futures for March delivery retreated for a sixth day on the Chicago Board of Trade. South African farmers probably planted 2.78 million hectares (6.9 million acres) of corn, or 3 percent more than the previous season, the Crop Estimates Committee said Jan. 24.
“The U.S. corn prices have decreased a lot,” Brink van Wyk, a trader at BVG Pty Ltd., said by phone from Pretoria. “It really looks like we are producing a surplus and that means prices will go down.”
Yellow corn is mainly used as animal feed in South Africa while the white variety is a staple food.
Wheat for delivery in March gained 0.5 percent to 3,533 rand a ton.