Johannesburg - South African corn dropped, following a decline of grain prices in the US, the world’s largest producer, as a forecast for rain in the US Midwest eased concerns dryness would hurt a record harvest.
White corn for delivery in December, the most active contract, fell 0.7 percent to 2,378 rand ($241) a metric ton, by the midday close on the South African Futures Exchange.
The yellow variety for delivery in September decreased 0.9 percent to 2,210 rand a ton.
Rain across the north-central and western Midwest will improve moisture this week, MDA Weather Services forecast today.
“The Chicago market also moved lower as the good weather has helped spark selling,” Lindy van Blommestein, a trader at Johannesburg-based Farmwise Grains (Pty) Ltd., said by phone.
Corn for delivery in December fell 1 percent to $4.9725 a bushel by 7:03 a.m. on the Chicago Board of Trade.
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 0.1 percent to 3,357 rand a ton. - Bloomberg News