Maize prices ended slightly higher on Wednesday after a volatile session‚ while wheat prices succumbed to profit taking for the second day in a row.
“Dry weather in the US is still a concern‚” said Pieter van Wyk‚ head of commodities at PSG Prime in Cape Town. “Wheat‚ along with maize‚ had good runs over the last while. Some profit taking was expected.”
The US maize crop - in its sensitive pollination phase - is suffering from heat stress‚ which could impact on expected yields.
At 12:00 when the local grains market closed‚ the near-dated July white maize contract was up R8.80 to R2‚586 a ton and the September white maize contract edged up R5 to R2‚608 a ton. December white maize nudged up R12 to R2‚672 a ton.
The near-dated July yellow maize contract gained R16 to R2‚566 a ton‚ the September yellow maize contract inched up R3 to R2‚563 a ton‚ while the December yellow maize contract slipped R11 to R2‚580 a ton.
The July wheat contract lost R67 to R3‚415 a ton‚ the September wheat contract was down R70 to R3‚455 a ton‚ and the December wheat contract was down R32 at R3‚388 a ton.
The US is the world’s largest producer and exporter of maize. Maize is an important input in a vast amount of food production. These include‚ among others‚ millers‚ the animal feed and poultry industries.
Dow Jones Newswires reported that Credit Suisse said investors were now eyeing food inflation risks after US futures for corn‚ soy and wheat jumped 20%-40% since May‚ with concerns the 2007-2008 price spike could return. - I-Net Bridge