SA maize and wheat prices closed significantly lower on Monday due to lower Chicago Board of Trade numbers. There is less demand in the US from buyers and exports are lower out of the US‚ because Argentina and Brazil are exporting a lot of maize.
“Wheat is down more than it should have been due to weak export demand‚” said Piet Faure‚ trader at Securities CJS.
“Locally we are waiting for the summer crop estimates report‚ which will state how much maize farmers are planning to plant in the upcoming season‚” he added.
White maize for December delivery‚ the most active contract on the South African Futures Exchange‚ dropped 2.82% to close at R2‚450 a ton. Meal made from the grain is SA’s staple food.
Yellow maize for December delivery‚ the most active contract‚ dropped 2.68% to R2‚474.00 a ton. The grain is used mainly as animal feed in SA.
Wheat for December delivery slipped 1.43% to close at R3‚515 a ton.
Meanwhile US wheat futures settled lower on Friday on concerns about weak export demand for US wheat and government forecasts for greater world supplies than analysts had expected.
Chicago Board of Trade December wheat futures fell 29 1/4 cents‚ or 3.3%‚ to $8.56 3/4 a bushel.
On Thursday‚ higher corn prices led wheat futures to rise‚ even though the US Department of Agriculture cut its forecasts for domestic and world wheat supplies by less than analysts had predicted. Corn and wheat prices often move together as both grains are used in animal feed.
Wheat‚ along with corn and soybean futures‚ also fell on profit-taking‚ as prices jumped on Thursday and traders looked to book gains and exit positions before the weekend.
CBOT December corn fell 20 1/2 cents‚ or 2.7%‚ to $7.52 3/4 a bushel. - I-Net Bridge