South Africa Makes Biggest Shipment of Yellow Corn in 15 MonthsTshepiso Mokhema
South Africa, the continent’s biggest corn producer, made its largest shipment of the yellow variety of the grain to a single country in at least 15 months.
Yellow corn amounting to 92,055 metric tons was exported to Japan in the week to July 26, the Pretoria-based South African Grain Information Service said in a statement on its website. That was the biggest delivery in a week since at least April 28, 2012, when Sagis started providing weekly historical data.
“There will definitely be pressure on prices at the pace we are exporting,” Benjamin Swanepoel, a trader at Trademar Futures (Pty) Ltd., said by phone from Johannesburg.
South Africa may run out of yellow corn if exports rise further, potentially lifting prices for white corn, an organization representing growers and traders said July 2. Yellow corn is used mainly as animal feed in the country, while a meal made from the white variety is one of South Africa’s staple foods.
The nation will probably consume 4.54 million tons of yellow corn and might supply 5.74 million tons in the marketing year through April, the Grain and Oilseeds Supply and Demand Estimates Committee said in its debut report, released June 28.
Yellow corn for delivery in September rose 1 percent to 2,138 rand ($216) a ton by the noon close on the South African Futures Exchange today. Prices are down 4.3 percent this year, rebounding from a 17 percent slide at the 2013 low on Feb. 12.