June 26, 2007

 

South Africa corn prices slump on CBOT losses

 

 

South African white corn futures slumped Monday, extending losses after corn prices lost ground in the US Chicago Board of Trade.

 

"It was on (the Chicago Board of Trade)," a Johannesburg-based trader said. "I don't think the Crop Estimates Committee will make a big adjustment to its production forecast."

 

The South African committee releases its fifth corn production forecast Tuesday, but traders believe that its report would do little to influence prices.

 

A survey of five agricultural traders expects the committee to leave its forecast unchanged at 7.05 million tonnes.

 

July white corn, the most active, ended 43 rand weaker at 1,681 rand per ton and December lost 45 rand to 1,774 rand.

 

July wheat edged down 12 rand to 2,393 rand per ton and December finished 31 rand lower at 2,167 rand.

 

Shortly before the local grain market closed, the rand was bid at 7.14 to the dollar from 7.12 Friday.

 

Dow Jones Newswires reported CBOT corn futures finished sharply lower on Monday, pressured by rain overnight in much of the US Midwest and forecasts for additional rain this weekend.

 

July corn settled 17 1/2 cents lower at $3.67 1/2 per bushel, September dropped 18 cents to US$3.76 3/4, and December fell 17 1/2 cents to $3.81 1/2.