Johannesburg - South African white corn rose to the highest level in almost two weeks amid increased concern about stockpiles of the grain, a trader said.
“There are more and more concerns over white-corn stocks,” Brink van Wyk, a trader from BVG (Pty) Ltd., said by phone in Pretoria.
White corn for delivery in December, the most active contract, gained 0.8 percent to 2,374 rand ($241) a metric ton, the highest since July 18, by the close on the South African Futures Exchange in Johannesburg. The yellow variety for delivery in September was little changed at 2,140 rand a ton.
South Africa will probably produce 5.75 million tons of white corn this season, according to a prediction made by the Crop Estimates Committee on July 25. That would be 2.4 percent less than the panel’s 5.9 million-ton forecast in June.
Exports of white corn were 42,227 tons in the week to July 26, the highest in 10 weeks, Pretoria-based South African Grain Information Service said on its website.
“There is a concern with the crop size plus more possible exports,” Van Wyk said.
South Africa is the continent’s biggest corn producer. A meal made from the white variety is a staple food in the country, while yellow corn is mainly used as animal feed.
Wheat for delivery in December gained 0.2 percent to 3,305 rand a ton. - Bloomberg News