Johannesburg- South African corn futures declined for a fourth day after a report from the government’s Crop Estimates Committee showed that production was higher than anticipated by analysts.
Yellow corn for delivery in July, the most active contract, dropped 0.4 percent to 2,258 rand ($223) a metric ton, for the longest losing streak for the contract since April 5.
The white variety for delivery in the same month was little changed at 2,288 rand a ton by the midday close on the South African Futures Exchange.
“The crop estimate yesterday was a little more than some people expected,” Brink van Wyk, a trader at BVG (Pty), wrote from Pretoria in an e-mailed response to queries today.
The median estimate of six analysts surveyed by Bloomberg the week before the report suggested that the nation might produce 11.3 million tons of corn this season.
The CEC report published yesterday showed that farmers may reap 11.38 million tons, still less than the 11.4 million tons predicted on May 23.
The committee’s spokeswoman, Marda Scheepers, said dry conditions earlier in the season hurt yields.
South Africa is the continent’s largest producer of corn.
Meal from the white variety is a staple food while the yellow kind is mainly used as animal feed.
Wheat for delivery in July fell 0.3 percent to 3,520 rand a ton. - Bloomberg News