(Businessweek) – South African corn futures gained as the market is still concerned about production output in the country, according to an analyst at Senwes (Pty) Ltd.
“There are still concerns about corn production and the supply of white corn in the country,” Thys Grobbelaar, an analyst at Klerksdorp, South Africa-based Senwes, said by phone today.
White corn for delivery in December, the most active contract, climbed 1.1 percent to 2,305 rand ($231) a metric ton by the close on the South African Futures Exchange. The yellow variety, for delivery in September, rose 0.8 percent to 2,235 rand a ton.
South Africa will probably reap 11.38 million metric tons of corn, the country’s Crop Estimates Committee said on June 25. That compares with a median estimate of 11.3 million tons by six analysts in a Bloomberg survey and the May 23 forecast of 11.4 million tons.
The nation is the continent’s largest producer of corn. Meal made from the white variety is a staple food, while yellow corn is mainly used as animal feed.
Wheat for delivery in December gained 0.5 percent to 3,441 rand a ton.
