Johannesburg - South African yellow corn futures declined the most in four weeks on speculation that an increase to a more than five-month high was overdone.
Yellow corn for delivery in July, the most active contract, fell 2.5 percent to 2,290.80 rand ($230) a metric ton, the most since May 6, by the midday close in Johannesburg.
On May 31 it rose to 2,350 rand, the highest since December 5.
Earlier today it stretched gains to as high as 2,360 rand, the highest since December 3 before retreating.
On May 31 it rose to 2,350 rand, the highest since December 6.
The white variety for delivery in the same month lost 2.3 percent to 2,315 rand a ton.
On May 31, the 14-day relative strength index for yellow corn, also called maize, reached 70.1. A reading above 70 is an indication to technical analysts that the price is poised to drop.
The relative strength index for the white variety reached 70.6.
The South African rand fell to a four-year low on that day.
“The market must have corrected itself from the high prices experienced last week,” Brink van Wyk, a trader at BVG (Pty) Ltd., said by phone from Pretoria.
The country is Africa’s largest producer of corn.
Meal from the white variety is a staple food while yellow is mainly used as animal feed.
Wheat for delivery in July dropped 1.6 percent, the most since April 2, to close at 3,649 rand a ton. - Bloomberg News