Johannesburg - South African white corn futures rose for a second day as a technical indicator signaled that prices had fallen to far.
White corn for delivery in July climbed 0.9 percent to 1,865 rand a metric ton on the South African Futures Exchange, after rising 1.4 percent yesterday.
The grain’s 14-day relative strength index was at 30.8 today.
Since April 23, it has been below the level of 30 that suggests a potential impending rebound to some analysts who study charts.
“White maize has really been oversold in the past few weeks,” Thys Grobbelaar, an analyst at Klerksdorp-based Senwes, said by phone yesterday.
Prices dropped 34 percent this year.
South Africa is collecting what is forecast to be the biggest harvest in 33 years this year, according to the Crop Estimates Committee.
On May 27, it raised its corn forecast to 13.5 million metric tons, the biggest since 1981.
Meal from white corn is cooked to make one of the country’s staple foods, known as pap, and the yellow variety is mainly used as animal feed.
Yellow corn gained 0.9 percent to 1,996 rand a ton and wheat increased 0.2 percent to 3,879 rand. - Bloomberg News