Maize bit firmer on expectations of little rain

15 Oct 2013

Local grain futures ended the Monday (14 October) session slightly firmer due to a softer rand and low expectations of rain.

"We expected the maize price to move sideways as the local weather premium is kicking in with prospects for rain in the local maize growing areas not so good. So a weather premium is built into prices. We may receive rain in the next two weeks‚ but the chances are not good‚" a local trader said.

Meanwhile there is uncertainty about the US crop sizes as there is no statistical news from the US‚ the trader said.

"It is the first time in 40 years that the World Agricultural Supply and Demand Estimates Report was not release in the US on Friday (11 October). US grain prices are moving sideways as there are no statistics available to give market direction‚" the trader said.

Global traders cannot get grain harvesting information from the US Department of Agriculture as the department is shut due to fiscal problems there.

The December 2013 white maize contract ended R18 higher at R2‚350 a ton‚ the March 2014 white maize contract added R12 to R2‚334 a ton‚ and the July 2014 white maize contract ticked up R5 to R2‚057 a ton.

The December 2013 yellow maize contract lifted R8.20 to R2‚153.20 a ton‚ the March 2014 contract added R4 to R2‚156 a ton and the July 2014 contract ended R1 higher at R1‚982 a ton.

December wheat gained R26 to close at R3‚455 a ton.

Source: I-Net Bridge

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