In two months’ time, farmers in the eastern parts of South Africa will commence with field preparation for the 2018/2019 summer crop production season.
It is still too early to tell what the potential size of the new season summer grain and oilseed crop will be. At this stage, we are closely monitoring the weather developments regarding the possible El Niño event. We will receive a clearer indication from weather forecasters on this matter in the coming month.
The weaker Rand against the US Dollar provided support to the domestic grain and oilseed market this week (ending 17 August 2018). The notable gains were on white and yellow maize with spot prices, each up by 3%from last week. Soya bean and sunflower seed prices were up by 2% and a percentage point from last week’s average prices.
The wheat spot price settled in negative territory compared to last week’s (ending 10 August 2018) average price.
The SAFEX beef carcass market experienced a quiet week with prices unchanged from levels seen last week. In terms of beef supply, South African farmers slaughtered 190 454 head of cattle in June 2018, down by 14%from the corresponding period last year.
Looking ahead, the data calendar for next week (ending 24 August 2018) is fairly light with no major releases. – Wandile Sihlobo, Agbiz
Wandile Sihlobo, head of economic and agribusiness intelligence at Agbiz, shares highlights in his update on agricultural commodity markets. Click here for the full report on agri markets for the major commodities.