Maize prices surged by the South African Futures Exchange-imposed maximum daily limit gain of R80 on longer-dated contracts on Monday‚ in line with US prices.
Price limits‚ however‚ don’t apply to shorter-dated maize contracts.
“According to private estimates‚ maize yields in the US are expected to be much lower than previously anticipated‚” said Lukas de Waal‚ a trader at Brisen Trading.
At 12.00 when the local grains market closed‚ the near-dated August white maize contract rallied R85 to R2‚735 a ton and the September white maize contract lifted R80 to R2‚759 a ton. December white maize rose R80 to R2‚818 a ton.
The near-dated August yellow maize contract jumped R81 to R2‚725 a ton‚ the September yellow maize contract rose R80 to R2‚750 a ton and the December yellow maize contract gained R80 to R2‚787 a ton.
The August wheat contract was up R42 to R3‚520 a ton‚ the September wheat contract was up R33 to R3‚560 a ton‚ and the December wheat contract rose R55 to R3‚550 a ton.
US grain and soybean futures rose on Friday as traders shifted their focus back to the searing drought in the US heartland‚ Dow Jones Newswires reported. Disappointing rainfall in the Midwest last week along with forecasts for hotter weather this week boosted both front-month corn and soybean futures by about 2%.
Dry and hot weather conditions in some parts of the US have been the primary reason for the surge in SA maize prices recently. - I-Net Bridge