March 19, 2008

South African wheat ends four-day record-breaking streak

South African wheat prices ended weaker Tuesday, breaking a four-day record-breaking winning streak as traders used the market's extended rally to bag profits.

The most active wheat for May delivery ended 25 rand lower at ZAR 4,220 (US$532.4) a tonne and March wheat, which is in delivery, gave up ZAR45 to ZAR4,205/tonne (US$633.95).

"It's mostly profiting. The guys have been pushing and pushing in the past few days. A drop in American markets last night did not support any further upside move," one trader said.

Traders said the market remained fundamentally bullish on early indications that even increased wheat output in the coming season would not be able to keep up with demand.

"As things stand, it will take more than one season of expanded plantings to pull prices down from this level," the trader said.