rand slipping against dollar affecting prices

South African soybeans, wheat and yellow corn rose as a weaker currency neutralized lower prices in the U.S.

The most active soybean contract, for delivery in December, rose 0.5 percent to 5,600 rand ($640) a metric ton in Johannesburg, while the commodity lost 0.6 percent to $15.40 a bushel on the Chicago Board of Trade by 12:28 p.m.

The rand declined 1.3 percent, the most since Oct. 5, to 8.7542 a dollar.
“Soybeans were down substantially in Chicago,” Brink van Wyk, a trader at BVG (Pty) Ltd, said by phone from Pretoria. “The rand neutralized this movement.”

The price of soybeans in Chicago declined after a U.S. Department of Agriculture report showed that 80 percent of the current harvest was collected by Oct. 21 compared with an average of 69 percent from 2007 to 2011.

Wheat is trading at import parity, or the price paid to deliver it in South Africa, Van Wyk said. The most actively traded contract, for delivery in December, rose for the fourth day, gained 0.4 percent to 3,611 rand a ton.

Yellow corn, used mainly as animal feed, rose 0.1 percent to 2,539 rand a ton. White corn, which is a staple in South Africa, declined for a second day, losing 0.8 percent to 2,509 rand a ton with 2,032 contracts bought and sold.

“Speculators are busy in the white corn market,” Van Wyk said. “They can get in and out of the market as there are large volumes of contracts.”

To contact the reporter on this story: Jaco Visser in Johannesburg at avisser3@bloomberg.net
To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net

Source : bloomberg.com
Tags : rand, rand strength, weak rand, rand vs dollar, rand exchange, soybeans prices, wheat prices, corn prices, south africa economy