South African Wheat Climbs in Johannesburg as Government Cuts Its Forecast

Wheat in South Africa rose after the government said farmers in the country will probably harvest less than expected this year.

Farmers may reap 1.51 million metric tons of the grain this season, 3.8 percent less than an earlier forecast, the Crop Estimates Committee said yesterday. That would be the least since 1992, when 1.32 million tons were produced, spokeswoman Marda Scheepers said by phone from Pretoria.

Wheat for March delivery, the most active contract on the South African Futures Exchange, advanced 67 rand, or 2.2 percent, to end trade at 3,174 rand ($447) a ton in Johannesburg.

White corn for March delivery gained 28 rand, or 1.9 percent, to 1,463 rand a ton. Meal made from the grain is the country’s staple food.

Yellow corn for July delivery rose 21 rand, or 1.3 percent, to 1,580 rand a ton. The grain is used mainly as animal feed in South Africa.

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       4,330          4,310           0.5
Soybeans         3,544          3,615          -1.9
Sorghum          1,520          1,510           0.7

(Source: http://www.bloomberg.com/news/2011-01-26/south-african-wheat-rises-after-government-reduces-crop-estimate.html)