South African Rand Strength Causes Corn Price To DeclineTshepiso Mokhema
South African corn futures fell as the rand rebounded from three sessions of declines against the dollar, making imported grain cheaper.
Yellow corn for delivery in July, the most active contract, declined 1.7 percent to 2,260 rand ($228) a metric ton by the noon close on the South African Futures Exchange in Johannesburg. The white variety for delivery in the same month dropped 1.5 percent to 2,293 rand a ton.
The rand advanced against the U.S. currency after South Africa’s current-account deficit narrowed unexpectedly and inflation slowed more than estimated by economists.
“The stronger rand largely contributed to today’s fall in prices,” Andrew Fletcher, an independent trader, said by phone from Kroonstad in the Free State province.
South Africa is the continent’s largest corn producer. Meal made from the white variety is a staple food, while yellow corn is mainly used as animal feed.
Wheat for delivery in July dropped 0.6 percent to 3,562 rand a ton.