Spotlight on the global maize marketJune 5, 2018
SA agricultural economy contracted by 24.2% q/q in the first quarter of 2018June 6, 2018
- The optimistic picture painted in our previous notes has somewhat changed for the near term. The weather charts have cleared over most parts of the Western Cape and currently shows a possibility of light showers in the week of 21 June 2018. This, however, will only be centred in areas around Helderberg, Winelands and Overberg.
- The rainfall received in the past couple of days led to a slight improvement in soil moisture, which subsequently benefited the newly emerged crop in areas around Swartland and Overberg. Moreover, the Southern Cape regions also benefited, hence the planting activity is towards completion.
- This is also evident in the provincial dam levels which averaged 24 percent in the week of 04 June 2018, up by 5 percentage points from the previous week and 6 percentage points from the corresponding period last year. However, next week’s dam levels update might not present a notable uptick as this one due to aforementioned weather dynamics.
- In terms of trade, the wheat import tariff rate of R437.24 per tonne that triggered on 10 April 2018 was finally published in a government gazette on 25 May 2018, making it an official rate. While this is 45 percent higher than the previous rate, the adjustment has brought some certainty in the market. Hence, the import activity has resumed after a quiet period of more than two months when the adjustments were still pending.
- Last week, South Africa imported 52 910 tonnes of wheat, which is double the volume imported in the week of 25 May 2018. About 31 percent from Russia, 29 percent from Lithuania, 20 percent from Latvia and 20 percent from Argentina. This brought South Africa’s 2017/18 wheat imports to 1.3 million tonnes, which equates to 68 percent of the season’s import forecast of 1.9 million tonnes.
Click HERE to read the full report by Wandile Sihlobo