Grains weaker on firmer rand

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Maize Reuters.

SA maize and wheat prices closed the Wednesday session lower due to a stronger rand after the US dollar eased after news of US President Obama’s re-election.

“Prices in Chicago are moving back up again due to less uncertainty in the market after the US presidential election with more grain buying and risk taking seen that is driving prices in the US higher‚” said Benjamin Swanepoel‚ trader at Trademar Futures in Johannesburg.

Locally white maize for December delivery‚ the most active contract on the South African Futures Exchange‚ dropped R37.80 to close at R2‚451.20 a ton. Meal made from the grain is SA’s staple food.

Yellow maize for December delivery‚ the most active contract for yellow maize‚ shed R20 to close at R2‚500 a ton. The grain is used mainly as animal feed in SA.

Wheat for December delivery lost R32.00 to close at R3‚685.

US corn and wheat futures all rose on Tuesday ahead of the US election.

Trading was subdued‚ as many traders avoided risk ahead of US election results on Tuesday night and Friday’s monthly crop reports from the US Department of Agriculture.

Corn prices were boosted by continuing concerns about tight domestic supplies of the commodity.

CBOT December corn finished up 5 1/2 cents‚ or 0.7%‚ to US$7.41.

Wheat futures Tuesday were buoyed by concerns that dry conditions in the Great Plains‚ where the severe US drought persists‚ will reduce potential yields for the winter-wheat crop. Dry weather in other major wheat-producing countries‚ such as Australia‚ also is supporting futures prices.

December wheat futures ended up 11 cents‚ or 1.3%‚ to $8.77 a bushel at the Chicago Board of Trade. - I-Net Bridge


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