JOHANNESBURG – South Africa’s most traded maize and wheat futures ended higher yesterday, boosted mainly by a weaker rand.
The benchmark March maize futures contract reversed earlier losses during the week, with white maize for delivery in that month gaining 1.45 per cent, or R26, to R1 815 a ton.
March yellow maize was up 0.23 per cent, or R4, at R1 744 a ton.
Traders said maize futures had been buoyed by a weaker rand against the US dollar during the grain trading session, and had also followed CBOT corn futures that were higher overnight.
‘The rand was a major factor today. The weakness that we had with the currency was a big factor in the gains for maize,’ a trader said.
A weak rand makes South African imports cheaper for foreign buyers.
‘Another thing to note is that we traded in quite low volumes,’ the trader said.
The most active March wheat futures contract also rode higher, gaining 1.90 per cent, or R53, to R2 836 a ton.
‘It’s partly on the worries about the cold weather in the US Midwest affecting the winter wheat crop and that’s why you see strong gains in wheat in general,’ a second trader said.
Local grain futures have continued to take their cue from the currency and the international market at the beginning of this year, with weather sentiment contributing only slightly to price direction.
‘I think as long as we have that volatility with the rand then it will continue to be a factor … and the guys here will always keep their eye on what happens internationally,’ the second trader said. – Nampa-Reuters
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