July 22, 2008

South African corn prices decline, following CBOT corn

Corn in South Africa fell by the extended daily limit after prices slumped in the US.

CBOT corn was down to US$6.15 per bushel, having lost 20 percent of its value in a month.

The grain fell on prospects of favourable weather which was expected to improve the US crop outlook.

White corn for December delivery, the most active contract on the South African Futures Exchange, fell 65 rand, or 3.3 percent, to 1,924 (US$254) a tonne.

Yellow corn for December delivery was down 3.2 percent, to 1,962 rand.

White corn is normally used for human consumption while yellow corn is used mainly for animal feed in South Africa.

The drop in corn prices also affected wheat.

Wheat for September delivery fell 41 rand, or 1.1 percent, to 3,600 rand a tonne. South Africa is the continent's third- biggest wheat producer, after Morocco and Egypt.

(US$1 = 7.563 rand)