Wheat Falls For Second Day in Johannesburg as Rains Help China Crop Growth

Wheat fell for a second day in South Africa on speculation wet weather will benefit the crop inChina.

China’s drought-affected areas are forecast to get 5 millimeters (0.2 inch) to 15 millimeters of rain or snow beginning tomorrow through Feb. 28, with some regions in three provinces including Henan getting as much as 55 millimeters, the National Meteorological Center said on its website today.

“There has been talk of rain in China in dry areas,” Piet Faure, a trader at CJS Securities Ltd., said by phone from Johannesburg today.

Wheat for March delivery, the most-active contract on the South African Futures Exchange, declined 43 rand, or 1.4 percent, to close at 3,138 rand ($443) a metric ton in Johannesburg.

White corn for July delivery declined 19 rand, or 1.2 percent, to 1,555 rand a ton. Meal made from the grain is South Africa’s staple food. The U.S., China and Argentina are the world’s biggest corn exporters.

Yellow corn for July delivery dropped 7.40 rand, or 0.5 percent, to 1,602.60 rand a ton. The grain is used mainly for animal feed in South Africa.

The gains or losses for the most active contracts of the following crops today were as follows. All prices are in rand and the crops are sold in tons:

             Today’s Price   Previous Close    % Change
Sunflowers       4,195          4,285            -2.1
Soybeans         3,341          3,442            -2.9
Sorghum          1,580          1,580             0.0

 

(Source: http://www.bloomberg.com/news/2011-02-24/wheat-falls-for-second-day-in-johannesburg-as-rains-help-china-crop-growth.html)