South African White Corn Rises Most Since May 31 as Rand DropsTshepiso Mokhema
South African white-corn futures rose the most in almost three weeks after the rand declined for a fifth day, making imports of the grain more expensive.
White corn for delivery in July, the most active contract, gained 3.5 percent to 2,372 rand ($231) a metric ton by the close on the South African Futures Exchange in Johannesburg. The advance was the biggest since May 31. Yellow corn added 3.5 percent to 2,339 rand a ton. Both varieties of the grain climbed by the 80-rand daily limit.
The currency in Africa’s biggest economy dropped after a report showed manufacturing in China, the biggest buyer of South African raw materials, shrank at a faster pace this month.
“The substantially lower rand moved corn prices up by limits today,” Lindy van Blommestein, a trader at Johannesburg-based Farmwise Grains (Pty) Ltd., said by phone.
A meal made from white corn is a staple food in South Africa, the continent’s largest producer of the grain. The yellow variant is mainly used to feed animals.
Wheat for delivery in July gained 2.6 percent to 3,650 rand a ton.