South African Agricultural Commodities Weekly Wrap

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South African Agricultural Commodities Weekly Wrap

  • This was a fairly quiet week in the South African agricultural market, with maize and soybean prices closing on in negative territory, whereas wheat and sunflower seed prices maintained the previous week’s gains.
  • The price movements can partly be explained by variation in production expectations. Maize and soybean production forecasts have been revised up from levels seen in May 2018, hence boosting local supplies and subsequently adding pressure to the market. Meanwhile, sunflower seed production estimates were left unchanged in the latest revision. 
  • Aside from price movements, the harvest process is in full swing across the country and the yield reports from farmers have largely been positive.
  • Looking ahead, the weather will be a key focus within the next couple of weeks as it continues to influence the harvest activity of summer crops and growing conditions of new season winter crops.
  • Apart from grain and oilseed markets, the SAFEX beef carcass market experienced a quiet week with prices unchanged from levels seen last week. In terms of the beef supply, the South African farmers slaughtered 219 434 head of cattle in May 2018, up by 11 percent from the previous month.

Click HERE to read the full report by Wandile Sihlobo