April 2, 2008

South Africa corn prices flat, soy and wheat prices down
 

South African white corn prices remain dull on Tuesday, dragged by poor soy and wheat prices despite positive US planting intentions.

The most active white corn for July delivery contract ended at ZAR 1,857 per tonne, down ZAR 2, and May white corn was at ZAR 1,875 per tonne, down ZAR 14.

US planting intentions were bullish but weaknesses from soy and wheat have pushed down prices, according to a Free State-based trader.

The USDA has reported that farmers intended to plant 86 million acres of corn this spring, down 7 million acres from 2007, and under analyst estimates of 87.4 million acres.

Soy and wheat prices plummeted just like it did in the US market.

According to speculations, US farmers were reducing corn acreage to plant more soy weighed on the grains, while an unexpected large US wheat inventory has caused hurried sales in the wheat market.

Soy for May delivery dropped by ZAR 70 to ZAR 4,284 per tonne while wheat for May delivery fell by ZAR 95 to ZAR 3,995 per tonne.