Trade aspects remain an important factor in the market as South Africa is a net importer of wheat. The wheat import tariff has triggered again on 20 March 2018 to R293.74 per ton. The previous trigger was on 13 February 2018, which then was calculated at R394.85 per ton.
One of the key reasons behind this downward revision of wheat import tariffs is the increase in international wheat prices (US Hard Red Wheat No.2), which was supported by unfavourable weather conditions in the United States (US) wheat growing regions. To recap, the adjustments in the wheat import tariff are satisfied when the international wheat price deviates from the base price by more than US$10 per ton for three consecutive weeks.
With that said, these rates are not yet applicable. The current import tariff is R716.33 per ton. The newly calculated rates will only be applicable after publication in the Government Gazette. The timeframe for this process is unclear. The import tariff will expectedly decline to R394.85 per ton first, and then go down further to R293.74 per ton.
Apart from wheat import tariff matters, the favourable weather conditions have brought a bit of optimism in summer and winter crop producing areas of South Africa.
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