The weather was again a primary focus in the South Africa grain and oilseed market this week (ending 18 May 2018). The most notable releases were the Seasonal Climate Forecast Update from the International Research Institute (IRI) for Climate Change Society at Columbia University, which suggested that the Western Cape could receive above-normal rainfall between June and August 2018.
The IRI’s estimate was partly in line with the sentiments expressed in the South African Weather Service’s Seasonal Climate Watch released in March 2018. The forecast rainfall could improve soil moisture in the province and subsequently benefit the new season winter crops.
Aside from the weather dynamics, the grain and oilseed market ended the week in negative territory owing to a combination of factors which included the harvest pressure, expectations of a large harvest and lower Chicago grain prices, amongst others.
The SAFEX beef carcass market experienced a quiet week with prices unchanged from levels seen last week (ending 11 May 2018).– Wandile Sihlobo, Agbiz
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.