Maize up on renewed interest‚ weather
South African maize closes the Wednesday session higher due to renewed buying interest after some profit taking on Tuesday.
By Madeleine van Niekerk
South African maize closed the Wednesday session higher due to renewed buying interest after some profit taking on Tuesday. Weather concerns also pushed maize prices‚ with not enough rain expected in certain maize areas in the near future.
Wheat however closed a bit softer due to lower Chicago Board of Trade (CBoT) prices and a stronger rand.
“The maize market came off its opening lows this morning which was the result of lower Chicago Board of Trade (CBoT) maize prices and a stronger rand. Good buying support was then seen with traders getting stuck in at these lower levels‚ which pushed prices higher. A bit of a weather premium is also built into the higher maize prices‚ due to concerns that not enough rain will fall in the Free State and North West where the July maize crop is busy pollinating and more rain is needed‚ while no rain is expected in the next ten days ” said Andrew Fletcher‚ trader at Unigrain in Kroonstad.
The white maize contract for March 2013 delivery closed R1 higher at R2‚164 per ton‚ the white maize contract for July 2013 added R23 to close at R2‚057 per ton and the white maize contract for September 2013 was R27 higher at R2‚089 per ton.
The yellow maize contract for March 2013 shed R20‚80 to R2‚190.20 per ton‚ while the July 2013 yellow maize contract added R20 to R2‚055 per ton. The September 2013 yellow maize contract closed R7 higher at R2‚073 per ton.
The March 2013 wheat contract slipped R42 to close at R3‚446 per ton and the July 2013 wheat contract gave back R24 to R3‚517.
Meanwhile in the US corn and wheat futures fell on Tuesday‚ pressured by negative technical signals and spread trading‚ as some speculative market participants who bought soybeans also sold corn or wheat‚ Dow Jones Newswires reported.
Both grains also face weak export demand. Wheat was also pressured by greater precipitation appearing in this week’s forecasts for the southern Plains.
March corn futures fell 3 1/2 cents‚ or 0.5%‚ to $6.95 1/4 a bushel. CBoT March wheat settled down 10 cents or 1.3% at $7.32 1/4 a bushel.