South African Corn Rises After Government’s 2011 Crop Forecast

Corn advanced in South Africa, the continent’s largest producer of the grain, after the government forecast the smallest harvest in four years.

The crop may fall 14 percent to 11.04 million metric tons from 12.82 million tons last season, Marda Scheepers, a spokeswoman for the committee, said yesterday. The estimate lags behind the 11.5 million-ton median forecast of 14 traders surveyed by Bloomberg this week.

White corn for July delivery rose 72 rand, or 4.6 percent, to 1,628 rand ($227) a metric ton by the close of trading on the South African Futures Exchange in Johannesburg. Meal made from the grain is the country’s staple food.

Yellow corn for July delivery gained 71 rand, or 4.4 percent, to 1,673 rand a ton. The grain is used mainly as animal feed in South Africa.

Wheat for May delivery declined 19 rand, or 0.6 percent, to 3,135 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      4,222         4,195            +0.6
Soybeans        3,405         3,337            +2.0
Sorghum         1,580         1,580             0.0

 

(Source: http://www.bloomberg.com/news/2011-02-25/south-african-corn-rises-after-government-s-2011-crop-forecast.html)