From planting to pollination, which is typically the period between October and February, the weather becomes an important factor in the South African summer grains and oilseeds market.
Fortunately this year, although there are concerns about a possible El Niño later in summer, the season started on a sound footing with widespread rainfall in the eastern and central parts of the country.
Planting activity is gaining ground in most areas, but it remains to be seen if it will reach the intended area of 4,03 million tons in the 2018/2019 production season, an increase of 5% year-on-year (y/y).
In the winter crop growing areas, harvesting is gaining momentum and the progress is reflected in the volume of wheat delivered to commercial silos in the Western Cape. There will most likely be good progress during the next two weeks as the weather forecast currently shows clear skies over most parts of the province.
The SAFEX beef carcass market experienced a quiet week with prices unchanged from levels seen last week (ending 26 October 2018). In terms of supply, South African farmers slaughtered 189 108 head of cattle in September 2018, down by 11% y/y 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.