August 16, 2007

 

South Africa corn futures slightly higher on rand

 

 

South African white corn futures ended higher Wednesday (August 15), supported by the sharply weaker rand. However, a lack of fresh inputs limited further gains.

 

December white corn, the most active, ended 12 rand higher at 1,935 rand a tonne and September gained by the same margin to 1,875 rand.

 

"It's a very weak close considering that the rand is very weak at the moment," a Free State-based trader said.

 

December white corn contract pushed as high as 1,965 rand during the session but pulled back in the absence of fresh news, the trader said, adding that he saw resistance at 1,952 rand and support at 1,990 rand.

 

"We will continue to use the currency, Chicago and technical factors as inputs until next month when we start monitoring weather conditions for next season's planting," the trader said.

 

Shortly after the local grain market closed the rand was bid at 7.40 per dollar, from 7.23 on Tuesday.

 

Traders are expected to start monitoring weather conditions from next month to determine prices for corn due to be delivered some next year, the trader said.

 

Meanwhile, a local farming body, Grain SA, advised farmers on Tuesday to plant corn on 2.4 million hectares in the coming season, which could possibly yield around 6.8 million tonnes.

 

Dow Jones Newswires reported that Chicago Board of Trade corn futures ended lower Tuesday, backpedaling in the absence of fresh supportive market influences.

 

September corn ended 3 1/2 cents lower at US$3.27 1/2, and December finished 4 cents lower at US$3.45.