South African Corn Slumps Following U.S. Benchmark's Drop to Five-Week Low

Corn in South Africa, the largest producer of the grain on the continent, slumped as prices fell to a five-week low in the U.S., which competes for African export markets.

Corn futures for March delivery fell as much as 18 cents cents, or 3.3 percent, to $5.22 a bushel in electronic trading on the Chicago Board of Trade today on concerns that China will take steps to curb commodity speculation and limit inflation, reducing demand for imports.

White corn for December delivery, the most active contract on the South African Futures Exchange, fell 62 rand, or 4.7 percent, to 1,248 rand ($177.11) a metric ton at 9:28 a.m. Johannesburg time. Meal made from the grain is the country’s staple food.

Yellow corn for December delivery fell 64 rand, or 4.6 percent, to 1,320 rand a ton. The grain is used mainly as animal feed in South Africa.

Wheat for December delivery lost 54 rand, or 2 percent, to 2,608 rand a ton.

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

            Today’s Price   Previous Close   % Change
Sunflowers       3,725          3,809           -2.2
Soybeans         2,969          3,039           -2.3
Sorghum          1,450          1,500           -3.3

(Source: http://www.bloomberg.com/news/2010-11-17/south-african-corn-slumps-following-u-s-benchmark-s-drop-to-five-week-low.html)