Dr Frikkie Maré, academic departmental head of the Department of Agricultural Economics at the University of the Free State (UFS), provides a monthly market overview of the previous month’s agricultural markets.

Maize market / Mieliemark

The cost of yellow maize decreased during April as the expected harvest may be bigger than originally anticipated. The market closed at R2 526/ton.

Die prys van geelmielies het gedurende April gedaal, aangesien dit blyk of die oes groter gaan wees as wat oorspronklik verwag was. Die mark het gesluit op R2 526/ton.

Economic indicators / Ekonomiese aanwysers

The rand weakened against the main currencies during April and traded R14,42 and R16,15 respectively against the Dollar and the Euro at the end of the month. During March, the Consumer Price Index (CPI) increased to 4,5% whilst the Producer Price Index (PPI) increased to 6,2% on a year-on-year basis. However, economic growth during the 4th quarter of 2018, as predicted by the BBP, has dropped to 1,1% on a year-on-year basis since the third quarter’s 1,3%.

Die rand het gedurende April verswak teenoor die vernaamste geldeenhede en het aan die einde van die maand teen onderskeidelik R14,42 en R16,15 teenoor die Dollar en Euro verhandel.  Verbruikersprysinflasie (VPI) en het gedurende Maart verder gestyg tot 4,5% op `n jaar-tot-jaargrondslag, terwyl produsenteprysinflasie (PPI) ‘n skerp sprong gemaak het tot 6,2% op ‘n jaar-tot-jaarbasis. Slegte nuus is dat die ekonomiese groei vir die vierde kwartaal van 2018, voorgestel deur die BBP, verlangsaam het tot 1,1% op`n jaar-tot-jaargrondslag sedert die derde kwartaal se 1,3%.

Red meat market / Rooivleismark

During April, the market for both A-grade and B-grade beef carcasses improved, whereas the price of C-grade carcasses decreased. Lamb prices saw a decline in all three grades during April. The last available prices for beef in April were R44,44/kg for A2, R39,53/kg for B2 and R37,27/kg for C2. The last available prices for A2, B2 and C2 lamb and sheep carcasses were R62/kg, R51,90/kg and R43,73/kg, respectively. The price of weaners, specifically lambs and calves, came under pressure with the last available prices at approximately R27,50/kg for calves and R32/kg for lambs. It appears as though the market for skins and hides has stabilised, with prices moving sideways and showing a slight upward trend during April.

Gedurende April het die mark vir A-graad beeskarkasse verder herstel, terwyl B-grade ook effens gestyg het. Die prys van C-graad karkasse het egter gedaal. In die geval van skaapvleis het die pryse van al drie grade gedurende April gedaal. Die laaste beskikbare pryse vir beesvleis in April was R44,44/kg vir A2, R39,53/kg vir B2 en R37,27/kg vir C2. A2, B2 en C2 lam- en skaapkarkasse se laaste beskikbare pryse was onderskeidelik R62/kg, R51,90/kg en R43,73/kg. In die geval van speendiere het die pryse van lammers en kalwers onder druk gekom en die laaste beskikbare pryse was onderskeidelik ongeveer R27,50/kg vir kalwers en R32/kg vir lammers. Dit wil voorkom of die mark vir huide en velle gestabiliseer het, met pryse wat gedurende April sywaarts in’n effense opwaartse neiging beweeg het.

Wool and mohair market / Wol- en bokhaarmark

During April, the wool market remained under pressure as the discontinuation of exports to China prevailed. During the last auction in March, clean wool traded 1,7% lower, compared to the previous auction. However, it was still 14,7% higher than a year ago. The indicator price of mohair also decreased by 1,7% during the April auction, compared to the previous auction, but traded 5,4% higher than a year ago.

Die wolmark was gedurende April onder druk terwyl uitvoere na China steeds gestaak bly. Skoonwol het tydens die laaste veiling van Maart 1,7% laer verhandel as tydens die vorige veiling, maar steeds 14,7% hoër as `n jaar gelede.  Die aanduiderprys van sybokhaar het tydens die veiling in April ook met 1,7% verswak teenoor die vorige veiling, maar 5,4% hoër verhandel as ‘n jaar gelede.

Dairy market / Suiwelmark

The producer price index of milk and eggs increased sharply in March, while the index of milk products also increased. The CPI of milk, eggs and cheese decreased during the same period.

Die produsenteprysindeks van melk en eiers het in Maart skerp gestyg, terwyl die indeks van melkprodukte ook verstewig het. Die verbruikersprysindeks van melk, eiers en kaas het in dieselfde tydperk effens versterk.