June 24, 2010

South Africa likely to leave corn forecast unchanged

South Africa, the biggest corn producer on the continent, will probably leave its forecast for this season's crop unchanged, a Bloomberg survey showed.

The government said farmers will reap 13.32 million tonnes in the season that started May 1, the same as estimated last month, according to the median estimate of 10 traders surveyed by Bloomberg. Forecasts ranged from 13.32 million tonnes to 13.7 million tonnes.

White corn for July delivery fell ZAR14.80 (US$1.97), or 1.4%, to end trade at ZAR1,036.20 ($137.68) a tonne on the South African Futures Exchange.

Meal made from the grain is the country's staple food.

Yellow corn for July delivery dropped ZAR12 (US$1.59), or 1.1%, to ZAR1,091 (US$144.96) a tonne. The grain is used mainly as animal feed in South Africa. The US and Argentina are the world's biggest corn exporters.