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“Our market had its main run and we are now consolidating with the same being seen in US markets. Volumes locally were low today‚ like yesterday‚ and we traded sideways‚” said Andrew Fletcher‚ trader at Unigrain.
“Wheat was sluggish today‚ it opened higher and then pulled back. There are some reports that Russia’s wheat stock levels are lower due to drought‚ which is bullish for wheat‚” he added.
The near-dated August white maize contract added R10 to R2‚695 a tonne and the September white maize contract gained R13.00 to R2‚713.00 a tonne. The December white maize contract climbed R13.80 to R2‚777.80 a tonne.
The near-dated August yellow maize contract added R1.60 to R2‚714.60 a tonne‚ the September yellow maize contract gained R4 to R2‚732 a tonne and the December yellow maize contract added R19 at R2‚764.
The August wheat contract was up R1 at R3‚376 a tonne‚ while the September wheat contract added R35.00 to R3‚423.00 a tonne and the December wheat contract gained R22.20 to R3‚425.20 a tonne.
Meanwhile US soybean futures jumped on Wednesday‚ as stronger cash markets raised expectations for more export demand and traders remained concerned about a tight supply outlook.
Some traders were speculating that China would buy more US soybeans soon.
Traders also remained concerned about the worst US drought in decades reducing the country's soybean output this year‚ extending a period of tight supplies.
Corn futures also ended higher‚ lifted by soybean prices and continued concerns about tight corn supplies. Drought has drastically reduced the amount of corn expected to be harvested in the US this year.
Some market participants bought corn on Wednesday to take advantage of price declines since Friday‚ expecting prices to recover due to tight supplies‚ traders said.
The US Department of Agriculture on Friday cut its domestic corn-production forecast more than expected but projected inventories in line with analysts' expectations‚ disappointing some market participants who had hoped for even lower forecasts.
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