Johannesburg - South African soybeans for December delivery jumped to the highest level in more than eight months, tracking prices that gained in the US on concerns a lack of rain will hurt yields.
The contract, the most active, climbed as much as 2.1 percent to 5,995 rand ($581) a metric ton, the highest since it started trading on December 19, before settling at 5,975 rand by the midday close on the South African Futures Exchange in Johannesburg.
Dry and warm conditions continue in the US Midwest, particularly Iowa, western Illinois and Missouri, adding stress for filling soybeans, forecaster DTN said August 30.
Soybeans surged as much as 3.8 percent today on the Chicago Board of Trade.
“Soy remains very strong,” Andrew Fletcher, an independent trader in Kroonstad in the Free State province, said by phone.
“The rainy weather they had expected was not enough.”
White corn for delivery in December retreated 0.2 percent to 2,373 rand a ton, while the yellow variety for delivery in the same month was 0.1 percent lower at 2,227 rand a ton in Johannesburg.
South Africa is the continent’s largest producer of corn.
Meal made from white corn is used as one of the nation’s staple foods, while the yellow variety is mainly used as animal feed. - Bloomberg News