White corn in South Africa has risen the most in more than three weeks as a technical indicator showed its price had fallen too low. South Africa is Africa’s largest producer of the grain.
White corn for delivery in July increased 0.9 percent to 1,933 rand ($187) a metric ton by the midday close May 14 on the South African Futures Exchange, the biggest advance for a most active contract since April 17. White corn’s relative strength index is 22.9. Readings lower than 30 indicate a potential impending increase to some analysts who study technical charts. The gauge has been below 30, or oversold, since April 23.
“We were strongly oversold and there was a correction by the market,” Thys Grobbelaar, an analyst at Klerksdorp-based Senwes Ltd., said in a Bloomberg report.
South African corn prices have declined 31 percent this year after reaching a record in March. Prices plummeted after the South African Crop Estimates Committee said in March that the next harvest may be the biggest in 33 years.