South African Agricultural Commodities Weekly Wrap

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South African Agricultural Commodities Weekly Wrap

  • This week there were no major data releases in the South African agricultural market. The weaker Rand against the US Dollar, coupled with higher Chicago grain prices provided support to the domestic grain and oilseed market, thus overshadowing the bearish sentiment that stemmed from expectations of large supplies in the 2018/19 marketing year.
  • The notable gains were on white and yellow maize with spot prices, with each respectively up by 3 percent from last week. Sunflower seed and wheat prices were up by 2 percent and a percentage point from last week’s average prices. Soybean price was marginally up from the previous week.
  • Aside from price movements, the harvest process has been completed in most summer crop areas. This is with the exception of maize, which is behind normal schedule due to a late start of the season on the back of dryness between late last year and early 2018.
  • 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 190 454 head of cattle in June 2018, down by 14 percent from the corresponding period last year.
  • Looking ahead, the data calendar for next week is fairly light with no major releases.

 

Click HERE to read the full report by Wandile Sihlobo