Maize prices ended weaker on Friday on the combination of rand strength against the US dollar and lower grain prices on the Chicago Board of Trade.
“There is less demand for US maize because of elevated prices‚” said Piet Faure‚ a trader at CSJ Securities.” These include countries such South Korea‚ Japan and Mexico which are big consumers of maize in the world. There’s also been some light relief rain in the US which dragged prices lower.”
At 12.00 when the local grains market closed‚ the rand was at 8.26 the US dollar‚ from 8.43 at previous close.
The near-dated August white maize contract lost R44 to R2‚658 a ton and the September white maize contract lost R47.20 to R2‚682.80 a ton. December white maize lost R59 to R2‚743 a ton.
The near-dated August yellow maize contract was down R38 to R2‚662 a ton‚ the September yellow maize contract shed R46 to R2‚676 a ton‚ while the December yellow maize contract gave up R46 to R2‚715 a ton.
The August wheat contract was off R84 to R3‚478 a ton‚ the September wheat contract dropped R73 to R3‚527 a ton‚ and the December wheat contract eased R72 to R3‚487 a ton.
US soybean futures fell sharply on Thursday‚ as Midwest rains raised fear of improved crop-yield potential‚ Dow Jones Newswires reported.
Futures fell under pressure from hopes that showers passing across parts of the US Midwest would benefit soy crops moving through their critical reproductive stage of development.
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