South African Corn Futures Drop Most in a Week as Rand ClimbsTshepiso Mokhema
South African corn fell the most in more than a week after the rand climbed against the dollar, lowering the cost of imported grains relative to locally produced varieties.
White corn for delivery in July, the most active contract, dropped 2 percent to 2,327 rand ($232) a metric ton, the most since June 4, by the midday close on the South African Futures Exchange. The yellow variety for delivery in the same month lost 2.4 percent to 2,296 rand a ton.
The rand gained for a second day, paring the drop since January to 15 percent,and bonds rose as investors gauged the worst debt selloff in four years was overdone.
“Primarily, the exchange rate caused today’s fall in prices,” Thys Grobbelaar, an analyst at Klerksdorp, South Africa-based Senwes Ltd., said by phone.
Meal made from white corn is a staple food in the country, while the yellow variant is mainly used as animal feed in the continent’s largest producer of the grain.
Wheat for delivery in July fell 1.8 percent to 3,605 rand a ton.