South African wheat futures on the JSE Securities Exchange South Africa’s agricultural derivatives division, or Safex, on Monday touched a three-week high on spill over strength from the maize market, as well as thoughts about a much lower local wheat crop than previously expected.
At 10.10am, December wheat was quoted at R1 375 rand a tonne, up seven rand
from the contract’s previous low. Earlier on Monday, December wheat touched R1 85 rand a tonneits highest level since October 22, 2004.
“I think the rally in the maize market is pulling wheat high. In addition, the size of the local wheat crop is definitely going to be lower, especially in the Western Cape,” a Western Cape market participant said.
“I see the Western Cape wheat crop at between 450 000 tonnes and 500 000 tonnes,” he added.
At its October meeting, the crop estimates committee put the Western Cape
wheat crop at 640 800 tonnes, down 5,3% from the September estimate of 676 400 tonnes.
In the previous season, the Western Cape produced a wheat crop of 487 500 tonnes. – I-Net Bridge