Dr. Frikkie Maré, academic departmental head of the Department of Agricultural Economics at the University of the Free State (UFS) gives his monthly market overview of agricultural commodity markets.
The price of yellow maize weakened at the start of July before it once again stengthened to close at R2 162 per ton.
The Rand gained ground against the major currencies in July and traded at R13,36 against the Dollar and R15,60 against the Euro. Consumer price inflation (CPI) increased to 4,6% in July and producer price inflation (PPI) increased to 5,9%. Economic growth in the first term of 2018 increased with 0,8% year-on-year.
Red meat market
The price of A2 beef carcasses decreased in July and prices for B and C grades were volatile. The most recently available prices were R46,30/kg for A2, R43,15/kg for B2 and R40,43/kg for C2. In the case of mutton, further price increases were seen for all grades. The most recenlty available prices for A2, B2 and C2 lamb and sheep carcasses were R82,66/kg, R70,10/kg and R61,53/kg respectively. The price of weaner calves saw a slight increase while the price for weaner lambs showed a sharp decline. The prices were R34,65/kg for calves and R44,17/kg for lambs. The prices of hides further declined in June and even lower prices are forecast. The price of Dorper and Merino skins improved slightly.
Wool and mohair market
No wool and mohair auctions were held in July. The indicator price for clean wool strengthened with 2,3% at the last auction of the season, held in June. The price level was 26,6% higher compared to the same time the previous year. The indicator price for mohair also increased at the auction in June, and closed 3,8% higher compared to the previous auction. The indicator prices were 35,1% higher compared to the same time the previous year.
The producer price index for milk and eggs, as well as that of other dairy products, decreased in July. The consumer price index for milk, eggs and cheese decreased slightly during the same period. –Market report