Johannesburg - Corn in South Africa gained to the highest level in more than three weeks as the rand declined against the dollar, increasing the price to import the grain.
White corn for delivery in December, the most active contract, increased 1.3 percent to 2,372 rand ($234) a metric ton, the highest since September 2, by the midday close on the South African Futures Exchange.
The yellow variety for delivery in the same month, rose 1.4 percent to 2,187 rand a ton, the highest since September 3.
The rand slid for a fourth day and headed for its longest losing streak in almost two months against the dollar as South African companies demanded foreign currency to pay for imports in the continent’s biggest economy.
It weakened 1.6 percent to 10.1523 per dollar by 1:48 p.m. in Johannesburg.
“The rand weakened substantially during trade actually, it caused the upward movement” in corn, Lindy van Blommestein, a trader at Farmwise Grins (Pty) Ltd., said by phone in Johannesburg today.
“Everyone was totally looking at the rand’s performance.”
South Africa, the continent’s largest corn producer, will produce 11.7 million tons of the grain this season, the Pretoria-based Crop Estimates Committee forecast yesterday.
White corn is one of the nation’s staple foods and the yellow variety is mostly fed to animals.
Wheat for delivery in December gained 0.9 percent to 3,419 rand, the highest since August 30.
Its been rising for five days, the longest streak since August 22. - Bloomberg News