Trade aspects remain an important factor in the market as South Africa is a net importer of wheat (see Chart below). The wheat import tariff triggered again on 10 April 2018, to R437.00 per ton. The previous trigger was on 20 March 2018, which then was calculated at R293.74 per ton, after an uptick in international wheat prices (No2 HRW), which were supported by unfavourable weather conditions in the United States (US) wheat growing regions.
However, these rates are not yet applicable. The current import tariff is R394.85 per ton. The newly calculated rates will be applicable after publication in a Government Gazette, of which the timeframe is unclear. The import tariff is expected to decline to R293.74 per ton first and then increase to R437.25 per ton.
As indicated in yesterday’s (18 April 2018) note, there were no wheat imports last week (ending 13 April 2018). The last imports were in the week ending 16 March 2018, recorded at 25 135 tons. This placed the 2017/2018 marketing year’s wheat imports at 1.2 million tons, which equates to 63% of the seasonal import forecast of 1.9 million tons. – 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.