Grain futures lower as rand strengthens

Domestic grain prices were lower on Tuesday as the rand firmed against the dollar.

South African grains are more attractive to foreign buyers when the rand is weaker‚ as it becomes cheaper for them to buy the commodity.

At the close of market‚ the white maize contract due for delivery in July 2015 was down R13 to R2‚590 a ton and the September 2015 contract had dropped R21.20 to R2‚621.80 a ton. The December 2015 contract fell R16 to R2‚672 a ton.

The yellow maize contract due for delivery in July 2015 was down by R27.80 to R2‚356.20 a ton‚ the September 2015 contract retreated by R28 to R2‚390 a ton and the December 2015 yellow maize contract lowered by R23 to R2‚431 a ton.

The wheat contract due for delivery in July 2015 slumped R46 to R3‚814 a ton‚ the September 2015 contract tumbled R32.40 to R3‚822.60 a ton. The December 2015 wheat contract was untraded.

Later in the afternoon‚ the crop estimates committee will release its third production forecast for summer grains as well as an estimate of how much land farmers will be allocating to plant winter grains.