Johannesburg - South African soybean futures declined the most in five months as expectations of increased supply in the US drove prices down.
Soybeans for delivery in September, the most active contract, fell 2.5 percent, the most since February 26, to 5,041 rand ($518) a metric ton by the noon close on the South African Futures Exchange.
“Soy closed in the negative and possibly dragged the whole market down as fears that some export contracts are going to be canceled in the US due to excess supply,” Melanie van der Linde, a trader at South Africa-based Suidwes Ltd., said over the phone today.
“Although this is yet to be confirmed, traders may have been hedging their bets.”
Soybeans for delivery in November slumped to $12.09 a bushel, the lowest in 17 months, on the Chicago Board of Trade as demand for US supplies fell.
The Department of Agriculture predicts soybean stockpiles may reach 74.1 million tons this year.
White corn for delivery in December, the most active contract, declined 1 percent to 2,305 rand while the yellow variety for delivery in September fell 1.7 percent to 2,117 rand.
South Africa is the continent’s biggest producer of corn.
The white grain is a staple food in the country, while the yellow variety is mainly used as animal feed. - Bloomberg News