Johannesburg - South African corn rose the most in more than five weeks after export figures showed the country shipped the most yellow corn in more than two years, raising concern that stocks are insufficient.
The yellow variety for delivery in July, the most active contract, jumped by the limit of 80 rand ($8), or 3.6 percent, the most since April 30, to 2,292 rand a metric ton by the close on the South African Futures Exchange.
White corn for delivery in the same month gained 3.6 percent to 2,321 rand a ton.
South Africa shipped 86,460 tons of yellow corn in the week through May 31, the most since the five days through September 24, 2010, when it exported 94,235 tons, Pretoria-based South African Grain Information Service said on its website yesterday.
“Although the export figures are looking good and there is a demand for our crop, there is still uncertainty over the production of our corn,” Andrew Fletcher, an independent trader, said by phone from Kroonstad in the Free State province.
“Given the fact that we are still uncertain about our crop size, stocks could still get tighter with more exports.”
South Africa’s Crop Estimates Committee on May 23 reduced its forecast for corn output this season by 1.1 percent to 11.4 million tons as dry weather curbs production.
The country, which is the continent’s biggest producer of the grain, harvested 11.8 million tons last year, more than the 10.4 million tons produced in the 2011 season and less than 2010’s 12.8 million tons, the biggest crop since 1982.
Meal made from the white variety is a staple food while yellow corn is mainly used as animal feed.
Last week’s shipment included 54,124 tons to Taiwan, the most to that country since the 2011-12 season, when 161,550 tons were exported.
Wheat for delivery in July rose 2.1 percent, to close at 3,625 rand a ton. - Bloomberg News