Johannesburg - South African corn futures dropped most in more than a week as the rand appreciated against the dollar, lowering the cost of imported grains relative to local produce.
Yellow corn for delivery in July, the most active contract, fell 1.1 percent, the most since March 14, to 2,303 rand ($248) a metric ton by the close in Johannesburg.
The white variety decreased 0.8 percent to 2,371 rand a ton.
The rand rallied for a third day against the dollar as a two-week strike at South Africa’s second-biggest coal-mining company ended. The currency climbed 0.6 percent to 9.2426 per dollar by the midday close of the futures market, after it had weakened 1.3 percent last week.
“The rand strength had much to do with today’s drop in corn prices,” Thys Grobbelaar, an analyst at Klerksdorp, South Africa-based Senwes Ltd., said by phone.
“The rand strengthened considerably over the dollar.”
South Africa is the continent’s largest producer of corn. White corn is a staple food, while the yellow variety is mainly used as animal feed.
Wheat for May delivery fell 0.3 percent, the most since March 18, to 3,492 rand a ton. - Bloomberg News