South African Corn Advances Ahead of USDA Report on Stockpiles

Corn rose in South Africa, the largest producer of the grain on the continent, ahead the U.S. Department of Agriculture stockpiles report.

“The prices are up because of the anticipation of the USDA report this afternoon,” Henriku Delport, a trader at Bushveld Grain Ltd., said by phone from South Africa’s capital, Pretoria. “It’s expected to be bullish.”

The USDA probably will trim its forecast today for pre- harvest grains stockpiles, according to the average estimates of as many as 26 analysts. The department is scheduled to update its forecasts at 8:30 a.m. in Washington.

White corn for March delivery, the most active contract, advanced 58 rand, or 3.7 percent, to end trade at 1,616 rand ($223) a metric ton on the South African Futures Exchange. Meal made from the grain is the country’s staple food.

Yellow corn for July delivery rose 47.20 rand, or 2.8 percent, to 1,730.20 rand a ton. The grain is mainly used as animal feed in South Africa.

Wheat for March delivery gained 43 rand, or 1.3 percent, to 3,400 rand a ton.

Gains or losses for the most active contracts of three additional crops today are as follows. All prices are in rand, and the crops are sold in tons:

             Today’s Price   Previous Close   % Change
Sunflowers       4,640          4,609            +0.7
Soybeans         3,799          3,790            +0.2
Sorghum          1,550          1,550             0.0

 

(Source: http://www.bloomberg.com/news/2011-02-09/south-african-corn-advances-ahead-of-usda-report-on-stockpiles.html)