SA white maize futures ended lower on Friday due to weaker Chicago Board of Trade (CBOT) figures‚ while yellow maize ended higher due to the distance between it and its market. Wheat also closed lower due to lower US prices.
“White maize was trading softer today due to softer maize prices in the US‚ but our yellow maize prices closed higher‚ due to the maize sitting in badly located silos‚ far away from where the demand is for feed on the farms. This pushes transport costs up hence the increase in the grain’s price‚” a local trader said.
White maize for December delivery‚ the most active contract on the South African Futures Exchange‚ dropped R9 to close at R2‚500 a ton. Meal made from the grain is SA’s staple food.
Yellow maize for December delivery‚ the most active contract for yellow maize‚ gained R14 to close at R2‚562 a ton. The grain is used mainly as animal feed in SA.
Wheat for December delivery dipped R4 to close at R3‚634 a ton.
US corn futures fell 1.7% on Thursday on renewed worries about weak export demand‚ Dow Jones Newswires reported. Corn futures for December delivery fell 12 1/2 cents to US$7.42 a bushel at the CBoT.
The severe US drought this year widely damaged what was once expected to be a record corn crop. Now‚ the US Department of Agriculture forecasts the national average yield will be the lowest since 1995.
Wheat futures fell on technical selling and pressure from lower corn prices. CBOT December wheat fell 11 1/4 cents‚ or 1.3%‚ to $8.72 3/4 a bushel. - I-Net Bridge