Johannesburg - South African corn futures declined the most in two weeks as prices fell in the US after favourable weather conditions expected for the rest of July improved crop prospects for 2013.
Yellow corn for delivery in September, the most active contract, closed down for the first time in five days, falling 2.8 percent to 2,197.80 rand ($221) a metric ton, on the South African Futures Exchange.
The white variety, for delivery in December, declined 2.2 percent to 2,335 rand a ton.
Both dropped the most since July 1.
Heavy showers are expected in areas of the western and central Midwest this week, QT Weather said in a report yesterday.
US farmers may harvest a record 354.35 million tons, 29 percent more than the past year, when crops were hurt by drought, according to the Department of Agriculture.
Corn for delivery in December slid 1.4 percent to $5.02 a bushel by 7:35 a.m. on the Chicago Board of Trade.
“American maize in Iowa and the south western part of Illinois was damaged by drought in the past season but better weather forecasted for the next two weeks is expected to improve crop harvests,” Thys Grobbelaar, an analyst at Klerksdorp, South Africa-based Senwes, said by phone today.
“The prospect of increased supply drove local prices down.”
South Africa is the continent’s largest producer of corn.
Meal made from the white variety is a staple food, while yellow corn is mainly used as animal feed.
Wheat for delivery in December declined 1.4 percent to 3,355 rand a ton. - Bloomberg News