Johannesburg - South African soybean futures rose to the highest level in almost a year in Johannesburg trading as US prices rallied for a fourth week.
Soy for delivery in December, the most active contract, climbed 2 percent to 5,880 rand ($577) a metric ton by the midday close on the South African Futures Exchange.
That’s the highest for a most active contract since September 17 last year.
Soybeans futures for delivery in November climbed for a fourth straight week in the five days through August 30 on the Chicago Board of Trade.
The market was closed for a public holiday today.
Iowa, Illinois and Indiana were headed for the driest August since 1897, according to T-Storm Weather.
The rain predicted for September 9 may be too late for some crops hurt by hot, dry weather last week, World Weather Inc. said in a report on August 30.
“The soybeans were planted a bit later than the maize and the effect of a drier period would have a greater impact on the supply of soy over that of corn,” Jacques Pretorius, a trader at Suidwes Beherend Ltd., said by phone from Leeudoringstad in the North West province.
Corn is also known as maize in South Africa.
White corn for delivery in December increased 0.7 percent to 2,377 rand a ton while the yellow variety for delivery in the same month gained 0.4 percent to 2,224 rand a ton.
South Africa is the continent’s largest producer of corn.
Meal made from white corn is used as one of the nation’s staple foods, while the yellow variety is mainly used as animal feed. - Bloomberg News