Johannesburg - South African corn prices dropped to the lowest in more than five weeks as the rand gained against the dollar, making locally produced grain cheaper.
White corn for delivery in July, the most active contract, closed 2.9 percent lower at 2,075.80 rand ($227) a metric ton in Johannesburg, the lowest since February 26.
The yellow variety for delivery in the same month decreased 2.1 percent to 2,058 rand a ton.
The rand strengthened against the dollar yesterday after central banks in Japan and Europe reassured investors they will keep economies awash in cash to bolster growth.
It gained a further 0.2 percent to 9.1452 per dollar by 2:21 p.m. in Johannesburg.
“The rand strengthened since yesterday and it influenced the prices,” Thys Grobbelaar, an analyst at Klerksdorp, South Africa-based Senwes, said by phone.
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 decreased 0.7 percent to 3,379 rand a ton. - Bloomberg News