South Africa maize flat as rally ends

JOHANNESBURG – South African maize prices ended flat on Friday as the rand and US prices failed to give the market direction, traders said.

September white maize futures closed one rand lower at 626 rand a tonne. The equivalent yellow closed at four rand lower at 628.”Generally, it’s the time of year when a drift pattern occurs.The harvest is coming off, there’s no real external stimulus, no speculation on the weather or the crop,” said one Johannesburg trader.”The market’s got nothing really to push it either way.”A weaker rand attracts foreign buyers as it makes exports cheaper, while the local market often tracks Chicago prices in order to stay competitive.Exports are vital in a year when South Africans are expecting a crop of over 12 million tonnes – the biggest crop in over two decades – and are saddled with a bulging carryover stock.Traders said these factors had already been discounted.Exports have picked up this year as prices have fallen back from last November’s peak of around 1000 rand a tonne, but traders said current prices could once again make it hard to find offshoare buyers.We need to go 50 bucks (rand) downward to stimulate exports,” the trader said.-Nampa-ReutersThe equivalent yellow closed at four rand lower at 628.”Generally, it’s the time of year when a drift pattern occurs.The harvest is coming off, there’s no real external stimulus, no speculation on the weather or the crop,” said one Johannesburg trader.”The market’s got nothing really to push it either way.”A weaker rand attracts foreign buyers as it makes exports cheaper, while the local market often tracks Chicago prices in order to stay competitive.Exports are vital in a year when South Africans are expecting a crop of over 12 million tonnes – the biggest crop in over two decades – and are saddled with a bulging carryover stock.Traders said these factors had already been discounted.Exports have picked up this year as prices have fallen back from last November’s peak of around 1000 rand a tonne, but traders said current prices could once again make it hard to find offshoare buyers.We need to go 50 bucks (rand) downward to stimulate exports,” the trader said.-Nampa-Reuters