Weaker rand and higher CBoT prices lift grains
The rand touched a weakest level of R11.67 to the dollar during the morning trading session‚ from a close of R11.61 on Thursday.
CJS Securities trader Piet Faure said the weak rand was supporting grain prices.
"Yellow maize is‚ however‚ underperforming‚ possibly because of the good rain we had. Maize is up 5 US cents in Chicago today and wheat up 10c. Our wheat prices are also firmer due to a weaker rand and higher Chicago prices‚" he said.
"The market is very quiet today as market participants are waiting for (decisions from) rating agencies Fitch and Standard & Poor's ... on SA's sovereign rating tonight. If they downgrade SA‚ it could have a detrimental affect on the rand‚ which would be supportive of grain prices. Grain prices are holding up well‚ despite the downward trend in commodity prices such as oil‚" Mr Faure said.
At the close of the market‚ December white maize was up R24.80 at R2‚159 a ton and the March 2015 contract added R19 to R2‚164 a ton.
The December yellow maize contract edged up R1.80 to R2‚162.80 a ton‚ while the March 2015 yellow maize contract was up R11 to R2‚201 a ton.
Wheat for delivery in December gained R18 to R3‚863 a ton and March 2015 wheat also gained R18 to R3‚948 a ton.
Source: BDpro