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South African Corn Rises as Dry Weather Stresses Argentina Crop

January 13, 2011

Corn in South Africa advanced as dry weather continues to stress crops in Argentina, the world’s largest shipper of the grain after the U.S., raising concerns that global stockpiles may be depleted.

White corn for March delivery, the most active contract on the South African Futures Exchange, gained 28 rand, or 2.2 percent, to close trade at 1,328 rand ($194) a metric ton. Meal made from the grain is the country’s staple food.

Argentina will continue to have a rainfall deficit in the seven days from yesterday, Telvent DTN Inc. said in a forecast. The lack of rain, combined with above-normal temperatures, will stress pollinating corn and developing soybeans, it said.

Yellow corn for March delivery advanced 36 rand, or 2.6 percent, to 1,442 rand a ton. The grain is used mainly as animal feed in South Africa.

Wheat for March delivery fell 1 rand to 2,888 rand a ton.

Gains or losses for the most active contracts of three additional crops today were as follows. All prices are in rand and the crops are sold per ton:

            Today’s Price   Previous Close   % Change
Sunflowers       4,219           4,186          +0.8
Soybeans         3,320           3,270          +1.5
Sorghum          1,500           1,500           0.0
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