Bloomberg News

South African Corn Rises Most in Almost Two Weeks as Rand Falls

June 18, 2013

Corn in South Africa gained the most in almost two weeks after the rand declined for a third day, making imports of the grain more expensive.

Yellow corn for delivery in July, the most active contract, jumped 3.1 percent to 2,296 rand ($228) a metric ton, the most for the contract since June 5, by the midday close in Johannesburg. The price of the white variety gained 2.8 percent to 2,325 rand a ton, also the most since June 5.

The currency of Africa’s biggest economy declined for a third day before data that may tomorrow show that the nation’s current-account shortfall widened.

“The weaker rand caused today’s rise in prices,” Thys Grobbelaar, an analyst at Klerksdorp, South Africa-based Senwes Ltd., said by phone today.

South Africa is the continent’s largest producer of the grain and meal made from the white variety is a staple food while yellow corn is mainly used as animal feed.

Wheat for delivery in July increased 1.6 percent to close at 3,575 rand a ton.

To contact the reporter on this story: Tshepiso Mokhema in Johannesburg at tmokhema@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net


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