South African maize futures finished Friday's session modestly higher, supported by technical buying on old crop contracts following recent selloffs.
News that rainfall was not as widespread as initially anticipated also lent some support, said Hansie Swanepoel, a trader with Vrystaat Mielies.
The March 2012 white maize contract gained R20.80 to R2,424.80 per ton, the May 2012 white maize lifted R35 to R2,160 per ton, the July 2012 white maize added R15 to R1,941 per ton, according to preliminary I-Net Bridge data.
The March 2012 yellow maize contract was up R9.80 to R2,519.80 per ton, but the May 2012 yellow maize contract slipped R9 to R2,070 per ton and the July 2012 yellow maize contract picked up R19 to R1,914 per ton.
The March wheat contract edged up R6 to R2,795 per ton, while May wheat added R5 to R2,850 per ton, and the July 2012 wheat contract remained at R2,880 per ton.
Dow Jones Newswires reported that US corn and wheat futures stumbled on Thursday, fuelled by investors' disappointment with world supply estimates from the US Department of Agriculture (USDA).
Corn prices had jumped 10% since mid-December as traders priced in the risk of smaller crops in South America resulting from dry conditions. The USDA's monthly crop report to a large degree confirmed what traders already knew.
The agency on Thursday reduced its outlook for production in Argentina by 15% to 22 million metric tons. Analysts had expected forecasters to cut their outlook for Brazilian output as well, but the USDA kept its estimates the same.
Industry analysts still feel the USDA is overstating Argentina and Brazil production. The USDA, however, can't be proven wrong until harvest, and with no immediate weather problem to fuel new buying, traders took profits on recent advances, said Dan Cekander, analyst with brokerage Newedge LLC in Chicago.
Corn futures did manage to rally to a one-month high after a report was released on technical buying, but erased those gains to finish down 0.9%, to US$6.37 a bushel. - I-Net Bridge