June 7, 2006

Corn prices in South Africa climb to 2-year highs

South African white maize prices climbed to 2-year highs Tuesday (Jun 7), as the rand continues to weaken.

Exports of the grain also fell slightly last week. 

The white maize contract earlier hit R1 277 (US$188.5), its highest since late February 2004. 

The rand was approaching 6-1/2-month lows against the US dollar.

South African corn prices have held up this year largely on expectations of a diminished harvest compared with last season's roughly 11 million tonnes.  

The official estimate is just over 6 million tonnes this year as lower prices last year resulted in farmers planting much less, while excessive rains may also have affected yields.