Johannesburg - South African corn futures gained for a second day after the rand weakened for the first time in four days against the dollar, raising the cost of imported grains relative to locally produced varieties.
White corn for delivery in July, the most active contract, increased 1.4 percent to 2,134 rand ($234) a metric ton by the noon close on the South African Futures Exchange in Johannesburg.
The yellow variety gained 1.2 percent to 2,115 rand a ton.
The rand slumped after South Africa’s central bank said increased borrowing and accelerating inflation risk raising borrowing costs.
The rand was the worst performer against the dollar today among the 16 major currencies tracked by Bloomberg, losing 0.4 percent to 9.1344 by noon.
Corn climbed for a second day on the Chicago Board of Trade yesterday.
“The increase in South African corn prices was bolstered by the rand weakened this morning,” Lindy van Blommestein, a trader at Johannesburg-based Farmwise Grains (Pty) Ltd., said by phone.
“Chicago closed higher last night, which resulted in a gain on the South African market, but rand depreciation pushed the prices even higher than anticipated.”
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 delivery in July gained 1.1 percent to 3,433 rand a ton. - Bloomberg News