This week (ending 26 October 2018) ended with some positive news in terms of production. South African farmers intend to increase the area planted to summer grain and oilseed by 5% from the 2017/2018 production season to 4,03 million tons.
The planting activity has recently begun in the eastern and central regions of South Africa and is likely to gain momentum following good rainfall in the past few days. Looking ahead, the weather, which is a major determinant if the planned planting materialises, will be a key focus in the market.
In terms of winter crops, wheat, barley and canola production estimates were lifted from the previous month (September) due to expected higher yields. Nonetheless, these estimates, particuarly wheat, could be revised down marginally in the coming month (November) owing to reports of recent crop damage in the Swartland area of the Western Cape following heavy winds and rainfall at the beginning of this week (ending 26 October 2018).
The SAFEX beef carcass market experienced a quiet week with prices unchanged from levels seen last week (ending 19 October 2018). In terms of supply, South African farmers slaughtered 211 951 head of cattle in August 2018, down by 11% from August 2017. –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.