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.
The price of yellow maize was volatile throughout November with a initial sharp price increase preceding a sharp decline. The market closed on R2 361/ton at the end of November.
The Rand strengthened during November and by the end of the month, it traded at R13,70 against the dollar and R15,56 against the Euro. Consumer price inflation (CPI) increased to 5,1% in November while producer price inflation (PPI) increased to 6,9%. The good news is that economic growth for the third term, represented by GDP, increased 1,1% year on year.
Red meat market
The prices of B- and C-grade beef carcasses were volatile during November, while the price of A-grade carcasses decreased before it rose sharply during the last week of the month. The latest available prices for November were R45,84/kg for A2, R40,64/kg for B2 and R39,65/kg for C2. The same trend was seen in mutton and lamb meat prices. A2, B2 and C2 lamb and sheep carcasses’ latest available prices were R74,27/kg, R66,88/kg and R59,60/kg respectively.
In the case of weaner animals the price of weaner lambs showed a sharp decrease while the weaner calf price moved sideways. The prices were R33,34/kg for calves and R36,67/kg for lambs. The price of hides decreased in November while the price for Dorper skins moved sideways. The price of Merino skins improved somewhat compared to the previous month.
Wool and mohair market
The indicator for clean wool improved somewhat compared to the previous months. During the last auction of the months it decreased by 1,1% compared to the previous auction. It was however 7,4% higher year on year. The indicator price for mohair traded 1,5% higher compared to the last auction for November, but was 19,4% higher year on year.
The producer price index for milk and eggs, as well as the index for dairy products, decreased in October. The consumer price index for milk, eggs and cheese decreased over the same period.