South African white corn drops significantly in two years

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Publish time: 17th March, 2014      Source: www.cnchemicals.com
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March 17, 2014

   

   
South African white corn drops significantly in two years
   
   

   

On the outlook for rainfall to boost the crop, South African white corn futures dropped the most in two years.

   

   

The contract for March delivery declined 7%, or ZAR250 (US$23.24), to ZAR3,320 (US$311) a tonne by the midday close on the South African Futures Exchange in Johannesburg. That was the biggest decline for white corn futures since March 7, 2012, based on data compiled by Bloomberg. The yellow variety for delivery in July dropped 1.6% to ZAR2,220 (US$208) a tonne.

   

   

The town of Welkom in the Free State province, the region which accounts for 45% of the nation's white corn, will have a 30-80% possibility of rain from March 14 till March 20, according to South African Weather Service website.

   

   

Local farmers may produce 12.4 million tonnes of corn this season, the committee said on February 27. The nation produced 12.8 million tonnes in 2010, the biggest crop since 1982.

   

   

South Africa is the continent's largest producer of corn. White corn is the source for a meal that's a staple food in the country, while the yellow variety is mainly fed to animals.

   

   

After gaining for five straight days in Johannesburg, wheat for delivery in May decreased 1% to ZAR4,013 (US$375) a tonne. South Africa is a net wheat importer and sub-Saharan Africa's largest grower of the grain after Ethiopia, according to the USDA.