Johannesburg - South African white corn fell to the lowest level in more than 2 1/2 years following a decline in the US price of the grain.
White corn for delivery in July fell 0.6 percent to 1,888 rand a metric ton by the close on the South African Futures Exchange in Johannesburg.
That’s the lowest level for a most-active contract since August 2, 2011.
Corn prices fell for a fourth day in Chicago.
South Africa’s harvest of both white and yellow corn may be the biggest in 33 years, the Crop Estimates Committee said on March 27.
The country is the continent’s biggest producer of the grain.
The US corn price is “down quite heavily from last week,” Brink van Wyk, a trader with BVG (Pty) Ltd. in Pretoria, South Africa, said by phone.
“This, coupled with our very big crop, means we will see the downward pressure continuing for the next two months, especially if the US has a good crop going until after our harvest ends in August.”
Meal made from the white type is used as a staple food called pap in South Africa, while the yellow grain is used as animal feed.
Yellow corn for July delivery declined 0.7 percent to 2,009 rand a ton, while wheat for delivery in the same month fell 0.4 percent to 3,928 rand a ton in Johannesburg. - Bloomberg News