South African white-corn futures gained for the first time in 10 days as the rand weakened against the dollar, raising the cost of imports and making prices for locally produced grain more attractive.
White corn for delivery in July, the most active contract, rose 0.2 percent to 1,827.20 rand a metric ton, the first increase since Jan. 29, on the South African Futures Exchange in Johannesburg.
The rand depreciated for a second day against the dollar, losing as much as 0.9 percent after North Korea tested a nuclear weapon in defiance of the United Nations, prompting investors to shun riskier assets.
“The rand weakened a lot, that’s why we went up slightly,” Brink van Wyk, a trader at BVG (Pty) Ltd., said by phone from Pretoria.
South Africa is the the continent’s largest producer of corn, also called maize. Yellow corn is mainly used as animal feed while the white variety is a staple food.
White corn’s 14-day relative strength index is 25. A reading below 30 is indicates to some analysts that a security is poised to advance.
South African wheat fell 1 percent to 3,470 rand a ton. The nation is a net importer of the grain. Yellow corn declined for an eighth day, losing 0.5 percent to 1,865.40 rand a ton.
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