Maize prices roll with the rand
April 30, 2004
Johannesburg - Maize prices on the SA Futures Exchange moved in tandem with the rand-dollar exchange rate yesterday, rising initially after the local currency weakened overnight before closing down as the rand recovered.
Although the crop estimates committee last month forecast a 21 percent drop in South Africa's maize crop from the 2003 season, it last week revised its estimate upwards to 7.82 million tons, a 19 percent decline after late rains.
This helped to stabilise prices, which had risen sharply because more than a quarter of the country experienced the worst drought on record in the first 11 months of last year, according to the Enviro Vision consultancy.
Yesterday white maize for July delivery initially rose as high as R1 168 a ton after the rand declined 1.1 percent to R7.005 to the dollar overnight, making imports more expensive.
With the rand recovering to R6.878 at the close, white maize ended R5 down at R1 115 a ton.
Yellow maize rose to R1 180 a ton in morning trade before closing R8 down at R1 157.
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