Big drop in maize and wheat prices

Maize and wheat prices closed dropped on Tuesday on the back of Chicago Board of Trade prices and a stronger rand.

“Maize stock is reaching the markets in the US at the moment and there are sufficient supplies‚ so it is driving prices lower there‚ but supply of maize in the US will decline later in the season‚ which will drive prices higher again‚” a local trader said.

The near-dated September white maize contract lost R75 to R2‚355 a ton‚ the December white maize contract shed R80 to R2‚406 a ton and the March 2013 white maize contract also dropped R80 to R2‚408 a ton.

The near-dated September yellow maize contract was down R85 to R2‚390 a ton‚ the December yellow maize contract lost R80 to R2‚402 a ton and the March 2013 yellow maize contract shed R80 to R2‚408 a ton.

The September wheat contract dropped R50.00 to R3‚410 a ton‚ the December wheat contract was down R52 to R3‚485 a ton‚ and the March 2013 wheat contract dropped R49 to R3‚575 a ton.

Meanwhile Dow Jones Newswires reported that soybean futures fell 4% on Monday‚ declining by their exchange-imposed daily trading limit‚ pressured by the ongoing US harvest and favourable weather in South America‚ where farmers were getting ready to plant soybeans and other crops.

Chicago Board of Trade soybeans for November delivery settled down 70 cents‚ or 4%‚ to close at $16.69 a bushel‚ their lowest level in a month.

Profit-taking pressured futures‚ as traders acknowledged that the market will have to chew through the US harvest before supplies would tighten in the near term.

Corn and wheat futures also fell sharply on Monday. Corn was pressured by anecdotal reports of better-than-expected yields in parts of northern Iowa and Minnesota‚ traders said. Corn for December delivery settled down 34 cents‚ or 4.3%‚ to $7.48 per bushel.

Wheat futures followed corn lower‚ and were also pressured by rains in parts of the US Great Plains that will aid winter-wheat planting.

Wheat prices also fell because rainfall in parts of Australia — a big wheat producer — helped ease concerns about drought conditions there.

Most-active CBOT December wheat settled down 46 1/4 cents‚ or 5%‚ at $8.78 a bushel. - I-Net Bridge