Wheat down on import competition

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South African maize prices closed the Tuesday session slightly lower due to the expectation of local rain soon‚ while wheat closed softer due to price competition with imports.

“Rain is expected soon and over the weekend‚ and it is dawning on the market that the maize crop will be bigger than previously expected‚ which has had a depressing effect on the maize price‚” Paul du Plessis‚ trader at Brisen Commodities in Pretoria said.

“Local wheat is too expensive when compared to imports. It is wheat harvesting season and silos are full of imported wheat‚ so local farmers are competing with that. If they want to sell their wheat now‚ the price has to drop‚” he said.

White maize for December delivery‚ the most active contract on the South African Futures Exchange‚ dipped R1 to close at R2‚441 a ton.

Yellow maize for December delivery‚ the most active contract for yellow maize‚ lost R7 to close at R2‚491 a ton. The grain is used mainly as animal feed in SA.

Wheat for December delivery closed R26 lower at R3‚629 a ton.

Meanwhile US corn futures rose on Monday‚ boosted by favourable outside markets and hopes for greater export demand for US corn‚ Dow Jones Newswires reported.

Chicago Board of Trade December corn futures settled up 11 3/4 cents or 1.6% at $7.38 3/4 a bushel.

Wheat futures rose on concerns about dry soil for wheat crops in the US southern Plains‚ and other signs of tighter world supplies. CBoT December wheat Friday settled at a four-month low for the front-month contract. CBoT December Monday wheat rose 3 3/4 cents or 0.4% to $8.41 3/4 a bushel. - I-Net Bridge

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