Dr Frikkie Maré, academic 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. This is the market overview for November 2020.
The price of yellow maize fell sharply at the beginning of November before trading fairly sideways. The market closed at R3 467/ton at the end of the month.
The rand strengthened further against the major currencies during November. At the end of the month it traded at R15,40 and R18,42 against the Dollar and Euro respectively. The CPI and PPI rose 3,3% and 2,7% year-on-year in October, respectively. The prime lending rate in November remained at 7%. Economic growth for the third quarter of 2020, represented by GDP, bounced back after the sharp decline in the second quarter, but the economy was still 6% smaller than a year ago.
Red meat market
During November, the price of A2 lamb carcasses moved sideways somewhat, while B2 and C2 sheep carcasses showed volatility but essentially decreased slightly.
In the case of beef carcasses, A-grade prices also moved sideways while B- and C-grade prices rose. The last available prices for beef carcasses in November were R49,89/kg for A2, R45,15/kg for B2 and R43,91/kg for C2. In the case of A2, B2 and C2 lamb and sheep carcasses, the last available prices were R83,80/kg, R67,59/kg and R66,34/kg respectively.
The prices of weaner lambs dropped during November while the prices of weaner calves rose. The last available prices were R38,85/kg for calves and R39,76/kg for lambs respectively. The prices of Dorper and merino skins as well as those of hides, rose sharply.
Wool and mohair market
The indicator price for wool weakened by 1,4% during the last auction in November compared to the previous auction, and traded 19,5% lower than a year ago. The indicator price of mohair fell by 1,2% during the last auction in November but traded 9,9% higher than a year ago.
The consumer prices of milk, eggs and cheese increased slightly in November, while the producer prices of milk products, milk and eggs decreased.