South African white-corn futures fell to the lowest in six months as corn plantings, which are forecast to increase this season, progress and U.S. prices of the grain decline.
White corn for delivery in March, the most active contract, plunged 3.2 percent to 2,219.60 rand ($261) a metric ton, the lowest since June 22, by the close on the South African Futures Exchange in Johannesburg. The yellow variety for July delivery fell 3.6 percent to 2,074 rand a ton.
Corn futures on the Chicago Board of Trade tumbled to a five-month low after the government said production of ethanol fell and inventories rose last week. South Africa will sow 2.74 million hectares (6.77 million acres) with corn compared with 2.69 million hectares planted in the previous season, the Crop Estimates Committee said on Oct. 25.
“Corn plantings have been completed in most growing areas, they are planting at quite a good speed, so the season is off to a good start,” Theo Venter, an analyst at Klerksdorp, South African-based Senwes Ltd., said by phone.
In South Africa, white corn is mainly used as one of the country’s staple foods, while the yellow type is used as animal feed.
Wheat for delivery in March, decreased 0.8 percent to 3,567.20 rand a ton.
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