South Africa's corn export plan blocked, prices decline

South African corn prices fell resulting from a plan to reserve a grain surplus for export would contravene legislation.

The surplus, expected from the biggest crop in 28 years, is now unlikely to be exported this year, the growers' organisation said.

''It's because we have a big crop and we lack export orders. The prices could go down further.'' Piet Faure, a trader at CJS Securities Ltd., said.

White corn for July delivery, the most active contract on the South African Futures Exchange, slipped 28 rand (US$3.63), or 2.6%, to 1,050 rand (US$134) a tonne as of June 8, 11:06 a.m. local time. Meal made from the grain is the country's staple food.

South Africa will reap 13.32 million tonnes of corn this season, according to the national Crop Estimates Committee. Grain SA expects a 14.5 million-tonne harvest.

''It's because we have an oversupply,'' said Rowan Erasmus, a commodity trader at Free State Cooperative in Bothaville, South Africa.

Wheat for July delivery dropped 0.1%, to 2,298 rand (US$297.63) a tonne.