South African maize and wheat prices closed the session lower on Friday due to weaker Chicago Board of Trade figures.
“The prices in the US are lower because a lot more of the harvest is coming onto the market than previously expected‚ which drives prices lower. Due to eurozone economic woes Europe is expected to import less maize from the US‚ and this also pushed US maize prices lower‚” a local trader said.
White maize for December delivery‚ the most active contract on the South African Futures Exchange‚ dropped R14 to close at R2‚275 a ton. Meal made from the grain is SA’s staple food.
Yellow maize for December delivery shed R32 to R2‚287 a ton. The grain is used mainly as animal feed in SA.
Wheat for December delivery slipped R25 to R3‚422 a ton.
US corn futures fell 1.2% on Thursday to a fresh three-month low‚ as a weak export-sales report underscored soft demand for the US crop‚ Dow Jones Newswires reported.
The US Department of Agriculture on Friday is likely to report tighter domestic inventories of corn than it previously projected according to analysts.
SA increased its 2012 maize output forecast on Wednesday — above market expectations — to 11.495 million tons from 11.192 million tons in its previous forecast because of higher deliveries to silos and better yields‚ SA’s crop estimates committee (CEC) said on Wednesday. - I-Net Bridge