South African maize and wheat prices closed the session strongly higher on Monday due to higher Chicago Board of Trade figures and a weaker rand.
“The US Department of Agriculture released it quarterly grains stocks report on Friday stating that the actual maize crops in silos’s in the US were 12.3% lower than what was previously stated‚ and this drove maize prices higher on Monday. The department also said that wheat in US silos was 2% lower than predicted‚ and this drove wheat prices higher today‚” Piet Faure‚ trader at CJS Securities said.
The International Grain’s Council also came out with a monthly forecast report stating that the world production of wheat and maize would be lower than previously predicted‚ because production of the grains in the European Union was lower‚ and this also drove maize and wheat higher today‚ he added.
White maize for December delivery‚ the most active contract on the South African Futures Exchange‚ gained R80 to close at R2‚347 a ton. Meal made from the grain is SA’s staple food.
Yellow maize for March delivery also added R80 to R2‚386 a ton. The grain is used mainly as animal feed in SA.
Wheat for December delivery gained R100 to close at R3‚512 a ton.
SA increased its 2012 maize output forecast last Wednesday — above market expectations — to 11.495 million tons from 11.192 million tons in its previous forecast because of higher deliveries to silos and better yields‚ SA’s crop estimates committee (CEC) said on Wednesday. - I-Net Bridge