Estimated reading time: 6 minutes
Dr Frikkie Maré, agricultural economist and academic head of the Department of Agricultural Economics at the University of the Free State, gives a monthly agricultural market overview of the previous month’s markets. This is the agricultural market review for June 2021.
During June, the price of yellow maize fell sharply for most of the month to close at R3 199/ton.
The rand weakened against the major currencies during June to close at R14,29 and R16,93 against the dollar and the euro, respectively. The consumer price index (CPI) and the producer price index (PPI) both rose sharply in May to 5,2 and 7,4% respectively. The prime lending rate is still constant at 7%.
Economic growth for the first quarter of 2021, represented by gross domestic product (GDP), once again performed slightly better than in the previous quarter. However, the economy was still 3,2% smaller than a year ago (before the first Covid-19 restriction took its toll).
The growth of the agricultural sector was 7,5% year-on-year, and although it declined from the previous quarter, the growth of agriculture, in percentage terms, was still the highest of all the sectors.
Red meat market
In June, the price of lamb and sheep carcasses moved sideways. The prices of beef carcasses were slightly volatile, while showing a slight downward trend. According to the latest available prices for sheep carcasses, the A2, B2 and C2 sheep carcasses were R93,26/kg, R76,61/kg and R72,17/kg respectively. The beef carcasses were R51,99/kg, R48,33/kg and R44,58/kg for the respective A, B and C grades.
The prices of weaner lambs and calves were volatile, but both closed higher than the previous month. The last available prices for weaner lambs and calves were R49,39 / kg and R38,46 / kg respectively.
The prices of hides and Dorper and Merino skins, although volatile, also increased during June.
Wool and mohair market
In June, the wool indicator price strengthened by 1,5% compared to the previous auction and traded 14,2% higher than a year ago. During the last auction for mohair in June, the indicator price fell by 5,4% and traded 64,3% higher than a year earlier.
During May, consumer prices for milk, eggs and cheese, as well as producer prices for milk, eggs and dairy products increased.