South African corn declined for a second day after a report from the U.S. Department of Agriculture showed more production than anticipated.
White corn for delivery in July fell 0.3 percent to 2,316 rand ($233) a metric ton by the midday close on the South African Futures Exchange. The yellow variety for delivery in the same month lost 0.3 percent to 2,287.40 rand a ton.
The USDA forecast corn output in the U.S., the world’s biggest producer, at 14.005 billion bushels, compared with the average estimate of 13.82 billion in a Bloomberg survey of analysts.
A stronger rand contributed to the declines, said Andrew Fletcher, an independent trader in Kroonstad in the Free State province of South Africa. The country’s currency strengthened after the World Bank cut its forecast for global economic growth, easing concern central banks are preparing to curtail monetary stimulus.
Meal made from white corn is a staple food in South Africa and the yellow variety is mainly used as animal feed in the continent’s largest producer of the grain.
Wheat for delivery in July dropped 0.8 percent to 3,570 rand a ton.
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