South African white-corn futures rose the most in five weeks on speculation the drop to a more than 10-month low was overdone.
White corn for delivery in July, the most active contract, climbed for a second day, gaining 2.1 percent, the most since Jan. 16, to 1,867 rand ($210) a metric ton by the close on the South African Futures Exchange. The yellow variety for delivery in the same month increased for the first time in nine days, advancing 1.7 percent to 1,897 rand a ton.
Yesterday, the relative strength index for white corn dropped to 25.4. A reading below 30 is a signal to technical analysts that the price is poised to rise. The RSI for the yellow variety fell to 24 yesterday.
“What has happened today is a technical correction,” Thys Grobbelaar, an analyst at Klerksdorp, South Africa-based Senwes Ltd., said by phone. “The maize is at good buying levels, so it’s gone up again.”
South Africa is the continent’s largest producer of corn, also known as maize. White corn is a staple food while the yellow variety is mainly used as animal feed.
Wheat declined 1.6 percent to 3,420 rand a ton. The nation is a net importer of the grain.
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