South African Corn Advances, Tracking Increase in U.S. Market

Corn rose in South Africa, tracking prices in the U.S., which competes with local farmers to supply the rest of Africa.

Corn for March delivery gained 0.5 percent to $6.5425 a bushel on the Chicago Board of Trade at 12:46 p.m. Johannesburg time. Prices increased on concern that rains in Argentina came too late to help crops in the world’s second-largest shipper recover from damage caused by dry weather.

White corn for March delivery, the most actively traded contract, rose 17 rand, or 1.2 percent, to close at 1,463 rand ($205) a metric ton on the South African Futures Exchange in Johannesburg. Meal made from the grain, which climbed 3 percent this week, is the country’s staple food.

Yellow corn for July delivery gained 27 rand, or 1.7 percent, to 1,594 rand a ton, for a 1.9 percent increase this week. The grain is mostly used for animal feed in South Africa.

Wheat for March delivery advanced 31 rand, or 1 percent, to 3,217 rand a ton.

The gains or losses for the most active contracts of the following crops today were as follows. All prices are in rand and the crops are sold in tons:

            Today’s price   Previous Close   % Change
Sunflowers      4,331         4,320            0.3
Soybeans        3,550         3,480            2
Sorghum         1,520         1,520            N/A

(Source: http://www.bloomberg.com/news/2011-01-28/south-african-wheat-falls-in-johannesburg-tracking-u-s-price.html)