South African Corn Climbs After Cut in U.S. Stockpile Estimate

Corn rose for a second day in South Africa, the largest producer of the grain on the continent, after the U.S. Department of Agriculture cut its inventory estimate.

“Prices are up because of the U.S. stock report,” Riaan Gerber, a trader at Derived Market Investment, said by phone from Pretoria.

The surplus at the end of the marketing year on Aug. 31 will be 675 million bushels, down from 745 million forecast in January and less than the 1.708 billion on hand a year earlier, the USDA said yesterday in a report.

White corn for July delivery, the most active contract, rose 14.80 rand, or 0.9 percent, to close at 1,684.80 rand ($231) 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 advanced 12.80 rand, or 0.7 percent, to 1,741.80 rand a ton. The grain is used mainly as animal feed in South Africa.

Wheat for March delivery gained 12 rand, or 0.4 percent, to 3,410 rand a ton.

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        4,655          4,642        +0.5
Soybeans          3,805          3,795        +0.3
Sorghum           1,550          1,550         0.0

 

(Source: http://www.bloomberg.com/news/2011-02-10/south-african-corn-climbs-after-cut-in-u-s-stockpile-estimate.html)