South African corn dropped for the first time in three days after prices fell in the U.S. yesterday as better weather for planting was predicted for this week.
White corn for delivery in July, the most active contract, dropped 1.5 percent to 2,198 rand ($245) a metric ton, the most since April 24, by the close in Johannesburg. The yellow variety for delivery in the same month, fell 1.4 percent to 2,182 rand a ton.
Corn closed 0.5 percent lower at $6.4675 a bushel yesterday on the Chicago Board of Trade on speculation that warm, dry weather this week will firm muddy soil in the Midwest and allow farmers to accelerate planting.
“Last night the American price was down as weather services predicted better planting conditions for the coming week,” Thys Grobbelaar, an analyst at Klerksdorp, South Africa- based Senwes Ltd., said by phone today.
Commodity Weather Group, based in the U.S., yesterday scaled back rain forecasts and expected dry weather to return through May 15, even as it said rain was moving into Nebraska and western Iowa and would move east in the next four days, temporarily halting planting.
America is the world’s largest producer of corn and output from South Africa is the biggest on the continent. The white variety is a staple food in the country while the yellow variety is mainly used as animal feed.
Wheat for delivery in July gained 0.7 percent to 3,500.20 rand a ton.
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