South African corn reached the highest in three days as the rand weakened against the dollar, making imports more expensive. Prices in the U.S. rose.
White corn for delivery in December, the most active contract, increased 0.9 percent, the highest since Nov. 9, to 2,440.20 rand ($276) a metric ton by the midday close in Johannesburg. The yellow variety gained 0.7 percent to 2,486 rand a ton.
The rand declined 0.4 percent to 8.8302 a dollar as of 12:50 p.m. A weaker rand increases the price of imported grains. Corn rose 0.5 percent to $7.27 a bushel on the Chicago Board of Trade.
“The rand weakened against the dollar, so our prices will go up,” Benjamin Swanepoel, a trader at Trademar Futures (Pty) Ltd., said by phone in Johannesburg. Also, the Chicago prices went up and we are following them.’’
South Africa is the continent’s largest corn producer. Meal made from the white variety is one of the country’s staple foods while yellow corn is mainly used as animal feed.
Wheat for delivery in December rose 0.1 percent to 3,685 rand a ton.
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