South African Corn Falls on Forecast for Rain in Growing Areas

Corn prices fell in South Africa, the continent’s largest producer of the grain, as a forecast for rain in growing areas bolstered prospects for yields.

The South African Weather Service predicted showers and thunderstorms across the provinces of Mpumalanga, the biggest producer of yellow corn, and Free State, where most of the nation’s white-corn crop is grown. Rain fell in Free State and Mpumalanga during the 24 hours to 8 a.m. local time, the service said on its website.

White corn for March delivery, the most active contract on the South African Futures Exchange in Johannesburg, fell 24 rand, or 1.8 percent, to end trade at 1,335 rand ($194) a metric ton. Meal made from the grain is the country’s staple food.

Yellow corn for July delivery dropped 24 rand, or 1.6 percent, to 1,462 rand a ton. The grain is used mainly as animal feed in South Africa.

Wheat for March delivery rose 10 rand, or 0.3 percent, to 2,933 rand a ton, taking its weekly gain to 1.7 percent.

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 per ton:

             Today’s Price   Previous Close   % Change
Sunflowers      4,246            4,270          -0.6
Soybeans        3,410            3,368          +1.2
Sorghum         1,500            1,500           0.0

(Source: http://www.bloomberg.com/news/2011-01-14/south-african-corn-falls-on-forecast-for-rain-in-growing-areas.html)