Dr Frikkie Maré, academic head of the Department of Agricultural Economics at the University of the Free State, gives a monthly market overview of the previous month’s agricultural markets.
In October, just like in September, the price of yellow maize moved fairly cyclically sideways. The market closed on R2 406/ton.
The rand moved fairly sideways in October, but was generally stronger than in September. At the end of the month, the rand traded at R14,71 and R16,70 respectively against the dollar and euro. In September, Consumer Price Inflation (CPI) remained at the same level as in August, while the producer price inflation (PPI) fell to 6,2%. The economic growth for the second quarter of 2018, portrayed by the GDP, increased by 0,4% on a year-on-year basis.
Red meat market
The prices of all grades of beef carcasses decreased in October. The last available prices for October were R45,30/kg for A2, R39,59/kg for B2 and R38,81/kg for C2. Mutton and lamb showed the same trend as beef and the prices of all three grades also decreased. The last available prices of A2, B2 and C2 lamb and sheep carcasses were R71,76/kg, R59,52/kg and R56,09/kg respectively. In the case of weaner animals, the price of weaner lambs decreased while weaner calf prices moved sideways. The prices were R33/kg for calves and R41/kg for lambs respectively. The price of hides and Dorper skins moved eratically sideways, while Merino skin prices decreased.
Wool and mohair market
The indicator price of clean wool has lost ground strongly in October, but improved slightly at the last auction. At this auction, the price strengthened by 2,7% compared to the previous auction and traded 16,4% higher than the previous year. The indicator price of mohair traded 1,1% lower at the October auction than at the previous auction, but 26,2% higher than a year ago.
The producers price index of milk and eggs and that of dairy products, decreased in September. The consumer price index of milk, eggs and cheese increased during the same period.