South African corn futures weakened for a second day to the lowest level in more than a month, tracking U.S. prices that fell following reports of bigger-than- expected stockpiles.
White corn for delivery in July, the most active contract, declined 3.5 percent to 2,195 rand ($237) a metric ton, the lowest since March 1, on the South African Futures Exchange. The yellow variety for delivery in the same month, dropped 3.6 percent to 2,145 rand a ton.
Corn futures in Chicago plunged 13 percent since the U.S. Department of Agriculture said March 28 that inventories were bigger than analysts forecast and that farmers will plant the most acres this year since 1936.
“Our market is still dependent on how America reacted to the USDA report,” Andrew Fletcher, an independent trader, said by phone from Kroonstad in the Free State. “We are still playing catch up to their big falls.”
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 decreased 1 percent to 3,385 rand a ton.
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