File image: Reuters
File image: Reuters

South African maize and wheat prices closed the Tuesday session lower due to lower Chicago Board of Trade (CBoT) prices‚ after the US Department of Agriculture said on Friday that stocks for maize and wheat worldwide would be higher than previously expected‚ which drove the prices of the grains lower.

“Ending stocks — the stocks that will be available in world markets — for wheat and maize worldwide will be higher‚ and this changed the direction of the market. The weaker rand today‚ trading at R8.79 to the dollar at 12.36pm‚ from a close of R8.7482 on Monday‚ reduced the effect on our local market. If the rand did not weaken‚ our maize and wheat prices would have closed the session much lower‚” said Marius Bosman‚ Safex trader at Unigrain in Randfontein.

White maize for December delivery‚ the most active contract on the South African Futures Exchange‚ shed R19 to close at R2‚420 a ton.

Yellow maize for December delivery‚ the most active contract for yellow maize‚ shed R15 to close at R2‚477 a ton. The grain is used mainly as animal feed in SA.

Wheat for December delivery closed R38.80 lower at R3‚676.20.

Meanwhile in the US wheat futures dropped more than 3% on Monday‚ fuelled by general selling in grain futures‚ as investors reduced exposure in riskier assets‚ Dow Jones Newswires reported.

Wheat was also pressured by continued selling after the US Department of Agriculture on Friday projected larger domestic supplies. December wheat futures ended down 28 3/4 cents‚ or 3.2%‚ to US$8.57 3/4 a bushel at the Chicago Board of Trade.

Corn traded lower with wheat‚ as technical weakness and broader selling pressure weighed on prices. CBoT December corn finished down 20 3/4 cents‚ or 2.8%‚ to $7.18. - I-Net Bridge