South African maize futures ended the session lower on Friday, on the back of a sharply weaker close overnight on the Chicago Board of Trade.
The January 2012 white maize contract was down R6 to R2,723 per ton, the March 2012 white maize contract fell R4 to R2,683 per ton, while July 2012 white maize shed R19 to R2,102 per ton, according to preliminary I-Net Bridge data.
The January 2012 yellow maize contract ended R12 lower to R2,737 per ton, the March 2012 yellow maize was R13 weaker at R2,620 per ton and the July 2012 yellow maize contract was off R35 to R2,043 per ton.
The January wheat contract was flat at R2,767 per ton, while the March wheat edged down R15 to R2,791 per ton, and the July 2012 wheat contract was unchanged at R2,865 per ton.
At 12:30 the rand was at R8.16 to the US dollar from R8.18 previously.
“The rand also pulled the market marginally down today,” a local trader noted.
Meanwhile, Dow Jones Newswires reported that US grain and soy futures fell sharply on Thursday on broad commodity weakness and an improved Argentina weather forecast that eased concerns about the crop there.
The declines were driven by a widespread risk-off trade in commodity markets, with sharp declines witnessed across energy and grain futures.
The dollar's surge against the euro weighed on grains generally, with traders taking profits after sharp recent gains, helping extend the losses.
Wheat futures led the declines, slumping to two-week lows.
Wheat came under pressure from profit-taking, as the absence of fresh supportive news and ample world supplies left traders without a reason to support prices seen as overbought.
Wheat prices had rallied in previous weeks, after South America weather concerns buoyed corn and soybeans.
Wheat is a competitor to corn in feed grain markets, so advancing corn prices push wheat prices as well.
Sluggish export demand and ample world wheat supplies serve as underlying bearish factors, particularly with US hard red winter wheat crop condition ratings improving, according to analysts at Doane Advisory Service.
Corn and soybean futures fell sharply as well, fuelled by traders reducing risk premium that had been built into prices related to Argentina dryness.
Forecasts calling for rain showers to move into parched areas of Argentina next week were enough to encourage traders to reduce some risk exposure in the markets.
The rain is welcome news for desiccated corn fields and the soy crop, which is showing signs of stress.
“The expected rains will not only allow us to maintain our Argentina planting forecast, but also bring relief to a large part of the central farming belt, where early plantings will start to enter a critical stage that will determine crop yields during the next seven to 15 days,” the Buenos Aires Cereals Exchange said Thursday.
Argentina is the world's third-biggest soybean exporter behind Brazil and the US, and the leader in global exports of soymeal and soy oil.
The South American nation is also the second-biggest corn exporter.
CBOT March wheat ended down 3.2% at $6.29 1/4 a bushel, while the MGEX March contract slipped 2.4% to $8.18 1/2 and KCBT March tumbled 3.9% to $6.86.
CBOT March corn ended down 15 cents, or 2.3%, at $6.43 1/2 a bushel. CBOT March soybeans dropped 21 cents, or 1.7%, to $12.09 a bushel. - I-Net Bridge