South African Yellow Corn Falls to 15-Month Low as Rand GainsNeo Khanyile
South African yellow corn fell to the lowest level in 15 months after the rand strengthened against the dollar, making foreign corn cheaper relative to the local variety, and as U.S. prices declined.
The price of yellow corn for delivery in July declined 1 percent to 2,003 rand ($192) a metric ton by the close of trade on the South African Future Exchange in Johannesburg. This is the lowest for a most-active contract since February 2013. U.S. corn prices fell for the fifth consecutive day by the close of trade yesterday.
South Africa’s harvest of both white and yellow corn may be the biggest in 33 years, the Crop Estimates Committee said on March 27. It will release a revised forecast on May 27. The rand gained 0.3 percent against the dollar, taking its advance in May to 1 percent, a fourth straight monthly gain.
“The rand is doing better and this has a negative input on prices,” said Andrew Fletcher, a trader with Unigrain in Kroonstad, Free State province, in a phone interview. “July prices have come down in the last two months and this discounted big crop is really attractive for buyers and exporters.”
White corn for July delivery declined 1.1 percent to 1,889 rand a ton, while wheat for delivery in the same month also fell 0.3 percent to 3,938 rand a ton in Johannesburg.