The strong start to the day was seen as a combination of local positive sentiment and a boost from the Dow Jones Industrial Average which on Friday reached a record close. There was big news out of Europe on Monday, with British pharmaceutical giants SmithKline Beecham and Glaxo Wellcome annoucing they have agreed to merge in a stock swap. THE government said on Monday it has requested the board chairman of South African Airways to stay on in his job until a replacement was appointed to continue the transformation of the airline. Mkwanazi, who holds various other chairmanship positions within Transnet, said last week his decision to quit SAA had been spurred by an increasing workload on his shoulders. Nearby positions have been pushed up to more than R800 a ton because of a physical squeeze, with some traders saying producers and trade houses are holding back stocks.
White maize is used for human consumption while yellow is used predominantly for animal feed.
The last report by the National Crop Estimates Committee put the maize area at 3,1-million hectares, but traders say a bearish figure is expected as farmers planted late as soaking rains fell from December. When the late rains came, filling dams around the country, more farmers planted to take advantage of the good weather. Feldman cautioned, however, that if the rains continue much longer they could become detrimental because crops now needs heat to begin developing. Its not desperate yet, but it will be if this weather continues for another two weeks. A new regulator charged with cleaning out insider trading has already made its mark in a series of tough moves against local executives.