June 27, 2007

 

South African corn trade slightly higher on weaker currency

 

 

South African white corn futures finished slightly higher Tuesday (June 26), ending a two-day losing streak on a softer rand (South African currency) and an early indication that corn prices in the US were set to rebound.

 

"The rand is a little weak, that could have given the market some support on the upside," a Johannesburg-based trader said.

 

He said the Chicago Board of Trade's (CBOT) overnight trading session pointed to a rebound in corn prices in the US.

 

The trader said the market ignored South Africa's Crop Estimates Committee meeting which released its corn production forecast shortly after the market closed.

 

The committee left its corn crop forecast at 7.050 million tonnes.

 

Rona Beukes, a committee member, said there was no new information to justify an adjustment.

 

July white corn, the most active, ended 14 rand higher at 1,695 rand per tonne and December gained 10 rand to 1,784 rand.

 

July wheat picked up 37 rand to 2,430 rand and December finished 41 rand stronger at 2,208 rand.

 

Shortly before the local grain market closed, the rand was bid at 7.17 to the dollar from 7.14 on Monday.

 

On CBOT electronic trading, July corn was last trading two cents higher at $359 6/8 and December was up by the same margin to US$376 rand, according to Dow Jones Newswires.