South African maize futures rebounded from Friday's lows, supported by a lower grain supply-demand ratio.
Maize prices fell hard on Friday, reacting to the bearish US crop report, which raised estimates for global grain supplies.
“If you look at maize supply/demand statistics, our stocks will be tighter until March when the new crop is expected to start coming in. The July maize contracts bucked the trend in today's session because the picture would likely be different when they expire,” said Hansie Swanepoel, a trader with Vrystaat Mielies.
The January 2012 white maize gained R51 to R2,802 per ton, the March 2012 white maize contract lifted R38 to R2,662 per ton, July 2012 white maize shed R15 to R1,977 per ton, according to preliminary I-Net Bridge data.
The January 2012 yellow maize contract added R62 to R2,827 per ton, the March 2012 yellow maize lifted R58 to R2,626 per ton and the July 2012 yellow maize contract dropped R13 R1,947 per ton.
The January wheat contract was up R15 to R2,765 per ton, while March wheat gained R17 to R2,812 per ton, and the July 2012 wheat contract remained flat at R2,870 per ton.
At 12:00 when the local grain market closed, the rand was at R8.14 to the US dollar, from 8.05 the previous session.
Meanwhile, Dow Jones Newswires reported that US grain and soybean futures ended lower on Friday, with corn and soybeans tumbling as forecasters projected a wetter trend for South American crops this week.
Traders extracted weather premium from both corn and soybean markets, said Dan Basse, president of advisory firm AgResource Company. “Without a South American weather problem, bullish traders have nothing to sink their teeth into,” Basse added.
Corn futures sank to new three-week lows, following up on Thursday's plunge to their exchange-imposed 40 cent daily trading limit.
The improved weather outlooks helped extend the bearish theme in the market, as traders continued to adjust to larger-than-expected US and world grain supplies estimated by the US Department of Agriculture. - I-Net Bridge