South African white corn declined in Johannesburg after the government’s Crop Estimates Committee yesterday forecast that the amount of land allocated to the grain will unexpectedly be 1.3 percent higher than last season.
Yesterday’s announcement of a 2.74 million hectare (6.77 million acre) forecast for all corn was higher than the median estimate of 2.6 million hectares given by five traders, surveyed by Bloomberg on Oct. 18.
“We knew it would go this way,” Benjamin Swanepoel, a trader at Trademar Futures (Pty) Ltd., who yesterday estimated plantings of 2.7 million hectares before the data was released, said by phone from Johannesburg. “It meets the requirements of supply and demand.”
The committee said that farmers will sow 1.6 million hectares with white corn and 1.14 million with the yellow type, compared with a total of 2.69 million hectares in the previous season.
White corn for delivery in December, the most active contract, fell 0.4 percent to 2,500 rand ($286) a metric ton by the close on the South African Futures Exchange in Johannesburg.
Yellow corn rose 0.6 percent to 2,562 rand a ton while wheat was 0.1 percent lower at 3,634 rand a ton and soybeans rose 0.1 percent to 5,730 rand a ton.
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