Maize futures rally on supply concerns
FMCG SUPPLIER NEWS
IOL Business - Feb 14th, 10:10
South African maize futures ended sharply firmer on Monday on supply concerns.
Thys Grobbelaar, market watcher at Senwes, said the icy weather conditions in the Black Sea area had delayed maize imports into SA, which boosted spot prices. SA imports maize mainly from Romania.
The March 2012 white maize contract gained R67.20 to R2,488.20 per ton, the May 2012 white maize lifted R38 to R2,196 per ton, the July 2012 white maize added R76 to R2,011 per ton, according to preliminary I-Net Bridge data.
The March 2012 yellow maize contract was up R45 to R2,560 per ton, the May 2012 yellow maize contract rallied R80 to R2,150 per ton and the July 2012 yellow maize contract picked up R50 to R1,967 per ton.
The March wheat contract edged down R15 to R2,775 per ton, while May wheat slipped R2 to R2,839 per ton, and the July 2012 wheat contract was down R15 to R2,865 per ton.
Dow Jones Newswires reported that US grain futures ended lower on Friday on broad commodity weakness, as traders were averse to risk amid economic uncertainty in Europe.
The declines were driven by a widespread risk-off trade in commodity markets, with declines witnessed across energy and grain futures. The US dollar's surge against the euro weighed on grains in general, with traders continuing to take profits after recent gains, helping to extend the losses.
“The markets will continue to struggle without new, consistent demand news to attract buyers,” said Chad Henderson, analyst with Prime Ag Consultants in Brookfield, Wis.
Bullish traders need to be fed supportive news. Buyers weren't inspired by Thursday's world supply estimates from the US government - which lacked any supportive surprises - routine demand, and easing crop weather concerns, said Henderson.
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