South African maize and wheat futures ended on a strong note on Monday‚ taking the rise in spot prices to 14-day run‚ due to drought concerns in the US and subsequent potential lower global grain supplies in future.
“The recent strong international grain rally on the Chicago Board of Trade spilled over into our local market and we are playing catch-up. The softer rand also pushed prices up‚” Rudi Swanepoel‚ grain trader at Farmwise Grains in Johannesburg said.
The local market took its cue from strong international markets‚ while the softer rand‚ shedding value from R8.21 on Friday to R8.30 on Monday‚ also helped local prices higher.
The near-dated July white maize contract was up R103‚ or 4.43%‚ at R2‚429 a ton. The September white maize gained R80 to R2‚437 a ton‚ gaining 3.39% on the day‚ and December white maize garnered R80 to R2‚501 a ton‚ up 3.30%.
The near-dated July yellow maize contract added R92.00 to R2‚372 a ton‚ up 4.04%. The September yellow maize contract added R80.00 to R2‚386 a ton and the December yellow maize contract also climbed R80 to R2‚444 a ton‚ up 3.38%%.
The July wheat contract edged added R80.00 to R3‚330 a ton‚ September wheat added R80 to R3‚391 a ton and the December wheat contract was up R73 at R3‚295 a ton.
Meanwhile US maize futures closed lower on Friday on profit taking after a strong rally due to drought in the Midwest and traders were still worried that the drought could further reduce maize yield. Wheat and soybean futures also closed lower on profit taking after sharp recent gains.
Maize for July delivery at the Chicago Board of Trade fell 24 3/4 cents‚ or 3.2%‚ to settle at US$7.43 1/4 a bushel.
“Significant heat combined with long-term dryness continues to reduce yield potential for corn and soybeans across much of the central and southern Midwest and Delta‚” forecaster MDA Earthsat said on Friday. - I-Net Bridge