SA maize prices closed the Monday session lower due to a stronger rand and some profit taking seen after good runs‚ while SA wheat closed higher due to stronger Chicago Board of Trade (CBOT) figures.
“It has been a very quiet day due to a lack on investor interest ahead of a local crop estimate report out on Thursday. The report will be the first production report for wheat‚ which is a winter crop‚ and will also be the first intentions report for summer crops‚ which include maize‚ sunflowers and soya beans‚” said Piet Faure‚ trader at CJS Securities.
At 12.10pm the rand was trading at R8.6148 from R8.6616 at Friday’s close.
“We have had good rains over the weekend in the most of the maize areas across SA and it would be good to plant more maize now‚ with the soil being soft after the rain making it easier to plant; we need more maize to be planted‚” he added.
SA wheat was also higher because there is speculation that the Ukraine‚ which is a major exporter of wheat‚ is not going to export wheat because they need more for local consumption.
White maize for December delivery‚ the most active contract on the South African Futures Exchange‚ shed R28 to close at R2‚530 a ton. Meal made from the grain is SA’s staple food.
Yellow maize for December delivery‚ the most active contract‚ dipped R27 to close at R2‚510 a ton. The grain is used mainly as animal feed in SA.
Wheat for December delivery added R6 to close at R3‚692 a ton.
Meanwhile corn futures ended mixed on Friday‚ also pressured by profit-taking after gains on Thursday and ahead of the weekend. Some analysts also are worried that pushing prices any higher would choke off even more demand than is needed to account for tight supplies‚ Dow Jones Newswires reported. December corn futures rose 3/4 cent‚ or 0.1%‚ to $7.61 1/2 a bushel.
A drought over the summer in Europe's Black Sea region shrank the potential of crops‚ including for wheat in Ukraine and Russia. The reduced supplies have led analysts to speculate for months that the countries could move to limit grain exports‚ as Russia did in 2010 after a severe drought and wildfires. - I-Net Bridge