South African maize prices finished the trading session sharply lower again on Wednesday after Tuesday’s big drop‚ due to a stronger rand and lower Chicago Board of trade prices.
“This afternoon the Crop Estimates Committee monthly crop estimate report is due and an increase of 300‚000 to 400‚000 tons of white and yellow maize locally is expected to be announced‚ with 10.7m ton of maize already delivered to local silos. So there is more maize in local silos already than originally forecast‚ which also drives prices lower‚” said Thys Grobbelaar‚ grain analyst at agribusiness Senwes.
White maize for December delivery‚ the most active contract on the South African Futures Exchange‚ dropped 3.29% to close at R2‚237 a ton. Meal made from the grain is SA’s staple food.
Yellow maize for December delivery shed 2.60% to R2‚247 a ton. The grain is used mainly as animal feed in SA.
Wheat for December delivery slipped 0.94% to R3‚472 a ton.
Meanwhile corn‚ wheat and soybean futures in the US all initially drew support on Tuesday from technical buying associated with perceptions that the markets had been oversold in recent sessions‚ Dow Jones Newswires reported. However‚ selling by farmers who are taking advantage of relatively high crop prices‚ turned corn and wheat futures lower‚ and soybeans settled just modestly higher.
Traders are also taking a cautious approach ahead of Friday's quarterly grain-supply reports from the US Department of Agriculture.
The US is the biggest grower and exporter of maize worldwide. The country has recently experienced the worst drought in more than 50 years‚ which sent prices on a rally run‚ with corn reaching an all-time high last month and‚ but prices have since come down. - I-Net Bridge