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The rand weakened on June 11 after the US Federal Reserve projected a 6.5% contraction in the US economy this year and 9.3% unemployment at year-end. The currency moved from a strongest-since-March level of R16.32 to R16.71 per dollar.
South Africa's central bank had projected a 7% contraction for the local economy.
A weaker rand raises the local-currency cost of imported feed ingredients, while a gloomier global outlook supports safe-haven demand for the dollar. The effect is macro rather than grain-specific.
moneyweb.co.zaOlivia Kumwenda-Mtambo, ReutersJun 11, 2020Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
