Bloomberg News

South African Corn Drops to One-Week Low as Rand Gains

April 16, 2013

South African white-corn futures declined to the lowest level in almost a week as the rand rebounded from the biggest one-day drop in six months against the dollar, making locally produced grain cheaper.

White corn for delivery in July, the most active contract, fell 0.2 percent to 2,125 rand ($232) a metric ton, the lowest level since April 10, by the close on the Johannesburg-based South African Futures Exchange. The yellow variety increased 0.1 percent to 2,101 rand a ton.

“The difference in the performance of white and yellow corn was due to speculative buying mainly driven by rand volatility,” Brink van Wyk, a trader at BVG Pty Ltd., said by phone from Pretoria today.

South Africa’s currency strengthened as much as 0.9 percent to 9.1236 per dollar. The rand’s three-month implied volatility against the dollar rose to 12.75 percent, from 12.62 yesterday, the most among 16 major currencies today, according to data compiled by Bloomberg.

Wheat for delivery in May fell less than 0.1 percent to 3,398 rand a ton.

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.

To contact the reporter on this story: Amogelang Mbatha in Johannesburg at ambatha@bloomberg.net

To contact the editor responsible for this story: Gordon Bell at gbell16@bloomberg.net


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