April 13, 2007

South Africa corn futures limit down on weaker CBOT
 

South African white corn futures ended limit down Thursday after corn prices on the US grain market ended down sharply last night.

South Africa's most active white corn contract for July delivery ended 45 rand down at 1,710 rand a tonne and the May white corn fell by the same margin to 1,692 rand.

"There's not much locally to give us direction. We followed CBOT weaker in today's session," a Johannesburg-based dealer said.

He added that the reports that the National Chamber of Milling expected corn harvest to be about 6.9 million tonnes was nothing new as the Department of Agriculture has already given the same assessment.

"Since the Crop Estimates Committee's meeting last month, not much has changed except that weather conditions have cooled down," the trader said.

South Africa, which competes with the US for corn export markets in Africa, is weeks away from harvest and the cooler temperatures are benefiting the maturing corn.

Shortly before the local grain market closed, the rand was bid at 7.17 from 7.14 when the market closed on Wednesday.

Dow Jones Newswires earlier reported that Chicago Board of Trade corn futures ended lower across the board on Wednesday, backpedaling on corn/soybean spread unwinding amid weather forecasts raising the potential for farmers to return planting corn next week in the Mid-west.

May's corn settled 8 1/4 cents lower at US$3.60 3/4, July corn ended 8 1/2 cents lower at US$3.72 3/4, and December finished 6 3/4 cents lower at US$3.87 3/4.