March 28, 2008

South African corn prices down despite positive CBOT closing

South African white corn prices were pressurized on Thursday noon as overnight gains on CBOT did not managed to have any effect.

The most active white corn for July delivery ended was trading at ZAR 1,820 per tonne, a drop of ZAR 28.

The traders have been expecting a bearish crop, which was the reason why they did not react to CBOT's positive closing, according to a Johannesburg-based trader.

South Africa's corn output forecast for 2007/2008 is likely to increase to 10.8 million tonnes from the earlier forecast of 10.6 million tonnes, according to an average estimate of five traders and analysts polled by I-Net Bridge.