September 22, 2008

South Africa's corn pressured by financial market worries

South African benchmark corn futures ended weaker on Friday (September 19, 2008) following international prices weighed down by financial market worries, according to traders.

The December corn futures contract closed down 1.18 percent, or 23 rand lower at 1,920 rand a tonne, while yellow maize for delivery in the same month shed 1.55 percent, or 30 rand, to end at 1,905 rand a tonne.

Chicago Board of Trade (CBOT) grains have been affected by negative sentiment amid fears that the crisis affecting global financial markets could spread, and falling crude oil prices.

A trader said that it is very difficult to try and trade at the moment as the grains are following more the financial crisis than anything else.

Corn and wheat futures in South Africa, the largest producer of grains on the continent, have mainly taken their cue from the Chicago market and movements in the rand currency this year, with little local news to drive the market.

US$1 = ZAR 8.069 (September 22, 2008)