Johannesburg - South African yellow corn futures gained the most in almost two weeks as warm weather conditions in the US made the crop there deteriorate, while plants are maturing at a slower-than-average pace.
Yellow corn for delivery in September, the most active contract, rose 1.7 percent to 2,226.60 rand ($228) a metric ton, the most since July 3, by the close in Johannesburg.
The white variety for delivery in December, increased 1.9 percent to 2,376 rand a ton.
Sixty-six percent of corn crops in the main growing areas in the US were rated good or excellent as of July 14, down from 68 percent that received the top ratings a week earlier, the US Department of Agriculture said yesterday.
Sixteen percent had reached the silking stage, critical for determining yields, compared with 35 percent of crops on average that had reached that phase by this time in the past five years.
“Corn went up today due to the fact that the good to excellent crop conditions rating decreased,” Benjamin Swanepoel, a trader at Trademar Futures (Pty) Ltd., said referring to the USDA report in an e-mailed statement from Johannesburg.
“This created concerns over the impact the recent dry and hot weather will have on the crop and as such prices moved up.”
South Africa exported 84,537 tons of the yellow grain to Japan in the week to July 12, Pretoria-based South African Grain Information Service said in a statement on its website.
There are concerns that if more of the yellow variety is shipped, the country will see the grain being substituted with the white variety for animal feed.
South Africa is the continent’s largest producer of corn. Meal made from the white variety is a staple food, while yellow corn is mainly used as animal feed.
Wheat for delivery in December increased 0.6 percent to 3,370 rand a ton. - Bloomberg News