South African Corn Falls on Forecast for Rain in Growing Areas

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

The South African Weather Service predicted clouds with rain 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 today.

White corn for December delivery, the most active contract on the South African Futures Exchange in Johannesburg, fell 8 rand, or 0.6 percent, to 1,289 rand ($185) a metric ton. Meal made from the grain is the country’s staple food.

Yellow corn for December delivery dropped 5 rand, or 0.4 percent, to 1,351 rand a ton. The grain is used mainly as animal feed in South Africa. The U.S. and Argentina are among the world’s biggest corn exporters.

Wheat for December delivery declined 3 rand, or 0.1 percent, to 2,641 rand a ton, for a second day of gains.

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 per ton:

             Today’s Price   Previous Close   % Change
Sunflowers      3,820            3,810          +0.3
Soybeans        2,990            2,984          +0.2
Sorghum         1,700            1,700           0.0

(Source: http://www.bloomberg.com/news/2010-11-19/south-african-corn-falls-on-forecast-for-rain-in-growing-areas.html)