SA yellow maize advances to 15-week high

File image: Reuters

File image: Reuters

Published Oct 28, 2013

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Johannesburg - South Africa yellow corn rose for an 11th day to the highest level in 15 weeks on concerns about a scarcity of the grain in the country’s North West.

Yellow maize for delivery in December, the most active contract, increased 0.2 percent to 2,272 rand ($231) a metric ton by the midday close on the South African Futures Exchange in Johannesburg.

That was the highest closing price for the contract since July 12. The white variety fell 0.2 percent to 2,400 rand a ton.

“We are experiencing scarcity in yellow corn in the North West province so more people are willing to buy the yellow right now to pile up stocks,” Bettie Dunhin, a trader at Suidwes Beherend Ltd. in Leeudoringstad in the North West province, said by phone today.

South Africa is the continent’s biggest producer of corn.

The white variety is a staple food while yellow is mainly used as animal feed.

Sunflower seed futures fell a 1.3 percent to 5,280 rand a ton.

“Sunflower seed futures fell mainly due to the local weather conditions this past week, because the more rain we get the bigger the yield in early planting season,” said Dunhin. - Bloomberg News

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