June 14, 2006

South Africa corn prices surge due to currency depreciation

South African corn prices rose to 2-year highs Tuesday (Jun 13) on reports of an increase in exports as the rand fell last week.

The July white maize contract rose 2 percent to close at 1,329 rand a tonne after scaling 1,342.60 rand at one point, its highest level since Feb 2004.

The rand fell to an 11-month low when it depreciated 1.8 percent against the dollar on Tuesday, sparking a surge in corn prices. 

Lower corn planting this season, resulting from low prices offered last season, also helped to boost prices.

Last year's bumper crop of 11.45 million tonnes has now dwindled to a harvest of just over 6 million tonnes.

White maize exports also rose 50 percent to 20,198 tonnes in the week to Jun 9 compared to the previous week, according to the South African Grain Information Service.