Prices close higher after Monday selloff
SA maize and wheat prices close the Tuesday session stronger‚ after big sales in the Monday session.
SA maize and wheat prices closed the Tuesday session stronger‚ after big sales in the Monday session‚ with investors seeing value on Tuesday at current levels.
“We are higher because the market is supporting grains at these lower levels. There has been some front running in the market‚ with downward pressure on prices that has been absorbed already‚” a local trader said.
White maize for December delivery‚ the most active contract on the South African Futures Exchange‚ added R5 to close at R2‚446 a ton. Meal made from the grain is SA’s staple food.
Yellow maize for December delivery‚ the most active contract‚ gained R18 to close at R2‚485 a ton. The grain is used mainly as animal feed in SA.
Wheat for December delivery added R34 to close at R3‚550 a ton.
Meanwhile in the US grain and soybean futures all fell on Monday as managed funds sold futures‚ traders said‚ Dow Jones Newswires reported.
Managed funds recently continued to trim their net positions betting on higher wheat‚ corn and soybean prices‚ according to regulatory data issued on Friday.
Soybeans dragged corn and wheat futures lower as well‚ as funds sold all three commodities. But corn was also pressured by negative technical signals and worries about high prices for the grain having curbed demand.
December corn fell 15 1/2 cents‚ or 2.1%‚ to $7.37 1/4 a bushel.
Wheat futures received extra pressure from concerns about weak export demand. Wheat traders worry that US supplies remain too expensive to be competitive in export markets. CBOT December wheat fell 8 1/2 cents‚ or 1%‚ to $8.48 1/4 a bushel.