South African Yellow Corn Gains as Rand Weakens for a Third DayTshepiso Mokhema
South African yellow-corn futures rose for the first time in four days after the rand weakened against the dollar, making imports of the grain more expensive.
Yellow corn for delivery in September, the most active contract, gained 0.2 percent to 2,145 rand ($216) a metric ton by the midday close on the South African Futures Exchange. The white variety for December delivery lost 0.2 percent to 2,335 a ton.
The rand declined for a third day and South African bond yields rose amid concern that lower commodity prices and labor disputes in the mining industry will slow growth in the country.
“When the rand weakens, our prices are negatively affected,” Andrew Fletcher, an independent trader in Kroonstad in the Free State province, said by phone.
South Africa is the continent’s largest producer of the grain. Yellow corn is mainly used as animal feed, while the white variety is used to make one of the nation’s staple foods.
Wheat for December delivery gained 0.3 percent to 3,330 rand a ton.