Johannesburg - South African corn futures rose to the highest level in a week on concern that insufficient rainfall in the country’s main growing regions will curb output.
Yellow corn for delivery in December, the most active contract, gained 0.4 percent 2,184 rand ($222) a metric ton, the highest since October 10, by the midday close on the South African Futures Exchange.
The contract increased for a fourth day, the longest streak of advances since the six days through August 22.
The white variety for delivery in the same month climbed 0.3 percent to 2,369 rand a ton.
The South African Weather Service has forecast no rain for Welkom in the Free State province, the region that is the country’s biggest producer of the grain.
There is a 30 percent chance of showers tomorrow and 60 percent on October 19 and 20, the service said on its website.
“We are still waiting for proper rain to come through,” Benjamin Swanepoel, a trader from Trademar Futures (Pty) Ltd., said by phone in Johannesburg.
“What we have experienced so far is not enough at all.”
South Africa is the continent’s largest producer of corn.
Yellow corn is mainly used as animal feed, while a meal made from the white variety is a staple food in the country.
Wheat for delivery in December was unchanged at 3,468 rand a ton. - Bloomberg News