Maize futures has fallen to a one-month low as the strengthening of the rand made imports more affordable.
Maize futures traded in South Africa, the continent’s largest producer of the grain, fell to one-month lows as advances by the rand against the dollar made imports cheaper.
White maize for delivery in December, the most active contract, slid 1.5% to R2,308 a metric tonne by the close on the South African Futures Exchange in Johannesburg. Yellow corn for the same delivery month dropped 0.9% to R2,147 a tonne. Those were the lowest prices since August 14 for both varieties.
The rand touched a five-week high against the dollar after Lawrence Summers withdrew his bid to become US Federal Reserve chairperson. South African corn prices also slumped on Monday after the grain fell in the prior session on the Chicago Board of Trade.
"The rand traded stronger than Friday and corn was down in the US," said Brink van Wyk, a trader at BVG.
Mielie meal, made from white maize, is one of South Africa's staple foods and yellow maize is mainly used as animal feed.
Wheat for delivery in December fell for a sixth session in seven to R3.345 rand a tonne, the lowest since August 19. – Bloomberg