One key factor that shaped South Africa’s grain and oilseed price performance this week was the recovery of the rand against the United States (US) dollar. Amongst other factors, this led to notable losses on SAFEX white and yellow maize, and sunflower seed spot prices, with each down by 2% from last week (ending 12 October 2018). The wheat spot price was also down by a percentage point from last week (ending 12 October 2018).
Aside from price movements, the focus in the market has slightly shifted towards the 2018/2019 summer crop production season which commenced this month (October) in the eastern parts of the country.
Most weather agencies show a likelihood of above-normal rainfall between November 2018 and January 2019, with the possibility of an El Niño-induced drought later in summer. Next week (ending 26 October 2018), the Crop Estimate Committee will release the ‘intentions of farmers to plant’ data which should give an indication of the 2018/2019 maize crop.
The SAFEX beef carcass market experienced a quiet week with prices unchanged from levels seen last week (ending 12 October 2018). In terms of the supply, the South African farmers slaughtered 211 951 head of cattle in August 2018, down by 11 percent from August 2017 due to the herd rebuilding process after a reduction during the 2015-2016 drought. –Wandile Sihlobo
Wandile Sihlobo, head of economic and agribusiness intelligence at Agbiz, shares highlights in his update on agricultural commodity markets. Click here for the full report on agri markets for the major commodities.