Stronger rand pressures grain prices
SA wheat futures end the Tuesday session sharply lower due to a stronger rand and weaker Chicago Board of Trade prices.
South African wheat futures ended the Tuesday session sharply lower due to a stronger rand and weaker Chicago Board of Trade (CBoT) prices.
“Wheat prices closed lower today due to the US markets‚ which put our local maize prices under pressure‚ and the stronger rand added further downward pressure‚” said Andrew Fletcher‚ trader at Unigrain in Kroonstad.
“Longer dated maize contracts were also down due to a spillover from the rainfall we had in the Free State and the North West over the weekend. The US maize markets were also softer adding further pressure to local maize prices‚” he added.
White maize for July 2013 delivery lost R40.20 to close at R2‚314.80 and yellow maize for July 2013 delivery shed R33 to close at R2‚339 per ton. Yellow maize is used mainly as animal feed in SA.
Wheat for December delivery‚ lost R48 to R3‚669 a ton and wheat for March 2013 delivery shed R49.80 to R3‚771.20. The July 2013 wheat contract closed R36 lower at R3‚840.