South African Yellow Corn Caps Longest Slump Since May on Supply

Jul 04, 2014 9:59 am ET

July 4 (Bloomberg) -- Yellow corn fell for a fourth day in South Africa, the longest slump since May 30, amid signs of plentiful supplies.

Yellow corn for delivery in December dropped 0.6 percent to 1,940 rand ($180) a metric ton on the South African Futures Exchange in Johannesburg. The white variety for December delivery decreased 0.2 percent to 1,851 rand a ton.

South African farmers will probably harvest 13.9 million tons of both varieties of the grain this year, the Crop Estimates Committee said June 26. That would be the largest harvest since the 14.1 million tons produced in 1981. Corn futures in Chicago entered a bear market yesterday.

“We will still see a downward movement of around 100 rand to 200 rand over the next month or month and a half,” Thys Grobbelaar, an analyst at Klerksdorp-based Senwes Ltd., said by phone. Prices falling 200 rand to 1,740 rand would be the lowest since July 2011, according to data compiled by Bloomberg.

Wheat for delivery in December climbed 0.1 percent to 3,620 rand a ton.