One key factor that shaped South Africa’s grain and oilseed price performance this week was the recovery of the rand against the US dollar.
Amongst other factors, this led to notable losses on SAFEX white and yellow maize, and sunflower seed spot prices, with each down by 2 percent from last week. The wheat spot price was also down by a percentage point from last week.
Aside from price movements, the focus in the market has slightly shifted towards the 2018/19 summer crop production season which commenced this month in the eastern parts of the country.
Most weather agencies show a likelihood of above-normal rainfall between November 2018 and January 2019, with the possibility of an El Niño-induced drought later in summer. Next week, the Crop Estimate Committee will release the ‘intentions of farmers to plant’ data which should give an indication of the 2018/19 maize crop.
The SAFEX beef carcass market experienced a quiet week with prices unchanged from levels seen last week. In terms of the supply, the South African farmers slaughtered 211 951 head of cattle in August 2018, down by 11 percent from August 2017 due to the herd rebuilding process after a reduction during the 2015-16 drought.
