This was a fairly quiet week (ending 6 July 2018) in the South African agricultural market, with maize and soya bean prices closing in negative territory, whereas wheat and sunflower seed prices maintained the previous week’s (ending 29 June 2018) gains.
The price movements can partly be explained by variation in production expectations. Maize and soya bean production forecasts have been revised up from levels seen in May 2018, boosting local supplies and subsequently adding pressure to the market. Sunflower seed production estimates were left unchanged in the latest revision.
Aside from price movements, the harvest process is in full swing across the country and the yield reports from farmers have mostly been positive.
Looking ahead, the weather will be a key focus during the next couple of weeks as it continues to influence the harvest activity of summer crops and growing conditions of new season winter crops.
Apart from grain and oilseed markets, the SAFEX beef carcass market experienced a quiet week with prices unchanged from levels seen last week(ending 29 June 2018). In terms of the beef supply, South African farmers slaughtered 219 434 head of cattle in May 2018, up by 11% from the previous month (April). – 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.