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Johannesburg – South African maize prices ended higher on Wednesday, despite the stronger local currency.
The rand dipped under 7.00 against the greenback in midday trade on Wednesday, hitting levels last recorded in mid January 2008, amid a very weak dollar, and better than expected local retail data, according to a local dealer.
The October maize contract gained R3 to R1 288 per ton, the December contract added R10 to R1 327 and the March 2011 white maize contract edged up R12 to R1 360.
The October wheat contract lost R20 to R2 740 per ton and the December wheat contract shed R28 to R2 744 rand. The March 2011 wheat contract shaved off R25 to R2 815.
At 13.00 the rand was bid at 6.9805 to the dollar from 7.0970 at the same time on Monday.
"We're higher despite the stronger currency. I think guys anticipated the move on the currency and priced the rand in at around 7.00/dollar," a dealer said.
She added that wheat was lower because it was more sensitive to the rand and it had reacted to the weaker international market.
Dow Jones Newswires reports that US corn futures ended lower Tuesday in a seesaw session amid profit taking, as the market extended its mild correction from sharp recent gains.
December corn ended down 3 1/2 cents, or 0.6%, at $5.04 3/4 a bushel, and March corn closed down 4 1/4 cents at $5.17.
The market traded both higher and lower during the session, with selling into the close.
"The fact that it crashed at the end of the day is a little disappointing" psychologically for bulls, said Linn Group analyst Jim Riley.
Still, he noted that a setback of a few cents is minor compared to the market's strong recent climb. Prices remain at their highest levels since late September 2008.
While profit taking and a lack of fresh bullish news weighed on the market, end-user buying is underneath the market, thanks to some forecasts calling for even higher prices.
"Ultimately, you can't argue that it's a buy-the-dip mentality," said Jason Britt, president of Central State Commodities.
Market bears say prices have climbed too high and are driven now more by fund activity than fundamentals. Funds sold an estimated 7 000 contracts Tuesday.
The market has been closely watching US yield reports, which have mostly been disappointing. But there have been fewer reports in recent days because of rains in the Midwest, so the market is now grasping for fresh news.
Traders continue to debate whether the market has rationed demand at current levels. While export sales have been weaker recently, analysts said that livestock and ethanol producers could still handle current prices.
Riley said this is partially because cash prices are far below futures prices.
The rand dipped under 7.00 against the greenback in midday trade on Wednesday, hitting levels last recorded in mid January 2008, amid a very weak dollar, and better than expected local retail data, according to a local dealer.
The October maize contract gained R3 to R1 288 per ton, the December contract added R10 to R1 327 and the March 2011 white maize contract edged up R12 to R1 360.
The October wheat contract lost R20 to R2 740 per ton and the December wheat contract shed R28 to R2 744 rand. The March 2011 wheat contract shaved off R25 to R2 815.
At 13.00 the rand was bid at 6.9805 to the dollar from 7.0970 at the same time on Monday.
"We're higher despite the stronger currency. I think guys anticipated the move on the currency and priced the rand in at around 7.00/dollar," a dealer said.
She added that wheat was lower because it was more sensitive to the rand and it had reacted to the weaker international market.
Dow Jones Newswires reports that US corn futures ended lower Tuesday in a seesaw session amid profit taking, as the market extended its mild correction from sharp recent gains.
December corn ended down 3 1/2 cents, or 0.6%, at $5.04 3/4 a bushel, and March corn closed down 4 1/4 cents at $5.17.
The market traded both higher and lower during the session, with selling into the close.
"The fact that it crashed at the end of the day is a little disappointing" psychologically for bulls, said Linn Group analyst Jim Riley.
Still, he noted that a setback of a few cents is minor compared to the market's strong recent climb. Prices remain at their highest levels since late September 2008.
While profit taking and a lack of fresh bullish news weighed on the market, end-user buying is underneath the market, thanks to some forecasts calling for even higher prices.
"Ultimately, you can't argue that it's a buy-the-dip mentality," said Jason Britt, president of Central State Commodities.
Market bears say prices have climbed too high and are driven now more by fund activity than fundamentals. Funds sold an estimated 7 000 contracts Tuesday.
The market has been closely watching US yield reports, which have mostly been disappointing. But there have been fewer reports in recent days because of rains in the Midwest, so the market is now grasping for fresh news.
Traders continue to debate whether the market has rationed demand at current levels. While export sales have been weaker recently, analysts said that livestock and ethanol producers could still handle current prices.
Riley said this is partially because cash prices are far below futures prices.
