South African corn futures fell the most in more than two weeks on speculation that an increase to a more than three-month high was overdone.
White corn for delivery in July, the most active contract, declined 3 percent to 2,310 rand ($231) a metric ton, the most since Feb. 25, on the South African Futures Exchange in Johannesburg. The yellow variety for delivery in the same month dropped 2.4 percent to 2,248 rand a ton.
Yesterday, the 14-day relative strength index for white corn, also called maize, reached 72.7. A reading above 70 is a sign to technical analysts that the price is poised to drop.
“A lot of today’s drop might have been from technical selling,” Andrew Fletcher, an independent trader, said by phone from Kroonstad in the Free State.
South Africa is the continent’s largest producer of corn. White corn is a staple food, while the yellow variety is mainly used as animal feed.
Wheat for May delivery rose 0.8 percent to 3,447 rand a ton.
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