LATEST PRICES
  • Fruits | 2017/10/18 - Apples R 7.59 / kg   [ View all ]  
  • Fruits | 2017/10/18 - Bananas R 6.38 / kg   [ View all ]  
  • Fruits | 2017/10/18 - Oranges R 5.69 / kg   [ View all ]  
  • Grains | 2017/10/18 - Sorghum R 2550.00 / t   [ View all ]  
  • Grains | 2017/10/18 - Soybeans R 4730.00 / t   [ View all ]  
  • Grains | 2017/10/18 - Sunflower seed R 4500.00 / t   [ View all ]  
  • Grains | 2017/10/18 - Wheat R 4200.00 / t   [ View all ]  
  • Grains | 2017/10/18 - White maize R 1888.00 / t   [ View all ]  
  • Grains | 2017/10/18 - Yellow maize R 1969.20 / t   [ View all ]  
  • Livestock | 2017/10/13 - Beef A2/3 R 45.42 / kg   [ View all ]  
  • Livestock | 2017/10/13 - Beef AB2/3 R 45.39 / kg   [ View all ]  
  • Livestock | 2017/10/13 - Beef B2/3 R 42.68 / kg   [ View all ]  
  • Livestock | 2017/10/13 - Beef C2/3 R 41.44 / kg   [ View all ]  
  • Livestock | 2017/10/13 - Beef weaners R 34.04 / kg   [ View all ]  
  • Livestock | 2017/10/13 - Goats - ewes R 25.00 / kg   [ View all ]  
  • Livestock | 2017/10/13 - Goats - small (below 45kg) R 40.00 / kg   [ View all ]  
  • Livestock | 2017/10/13 - Goats - young (above 45kg) R 40.00 / kg   [ View all ]  
  • Livestock | 2017/10/13 - Mutton A2/3 R 77.65 / kg   [ View all ]  
  • Livestock | 2017/10/13 - Mutton AB2/3 R 65.64 / kg   [ View all ]  
  • Livestock | 2017/10/13 - Mutton B2/3 R 58.79 / kg   [ View all ]  
  • Livestock | 2017/10/13 - Mutton C2/3 R 55.79 / kg   [ View all ]  
  • Livestock | 2017/10/13 - Mutton Feeder Lamb R 41.00 / kg   [ View all ]  
  • Livestock | 2017/10/13 - Pork baconers R 29.05 / kg   [ View all ]  
  • Livestock | 2017/10/13 - Pork porkers R 30.04 / kg   [ View all ]  
  • Livestock | 2017/10/13 - Pork sausage R 20.23 / kg   [ View all ]  
  • Livestock | 2017/10/13 - Poultry fresh R 27.18 / kg   [ View all ]  
  • Livestock | 2017/10/13 - Poultry frozen R 26.47 / kg   [ View all ]  
  • Livestock | 2017/10/13 - Poultry IQF R 23.78 / kg   [ View all ]  
  • Vegetables | 2017/10/15 - Cabbage R 2.16 / kg   [ View all ]  
  • Vegetables | 2017/10/15 - Carrots R 2.90 / kg   [ View all ]  
  • Vegetables | 2017/10/15 - Onions R 5.45 / kg   [ View all ]  
  • Vegetables | 2017/10/15 - Potatoes R 51.84 / 10 kg   [ View all ]  
  • Vegetables | 2017/10/15 - Tomatoes R 8.24 / kg   [ View all ]  
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Latest Industry News

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Zuma Cabinet Reshuffle

  • Article Date: 2017/10/17 | Category: Other

Much of the resilience of the Rand against some of the major currencies can be attributed to investors’ appetite for investments in emerging markets, the rise in commodity prices and the narrowing of the current account deficit.

However, volatility in the currency is expected to increase with political uncertainty that are becoming more prevalent. This is evident from the latest developments, with the Rand that rallied on the back of the high court ruling that could lead to the reinstatement of the more than 750 corruption charges against President Zuma, only to lose ground following the most recent Cabinet reshuffle on the 17 October 2017.

It is however expected that the Rand will continue to show some form of resilience and remain within the current trading band against the major currencies.

The question now is what the impact on the Rand will be when the NPA decide not to prosecute Zuma on his corruption charges, as is expected.

Vegetable Prices reach new highs

  • Article Date: 2017/10/16 | Category: Other

The average weekly potato price increased by 10% from R46.93 to R51.84 per 10kg bag to break through the R50/10kg barrier for the first time in 2017.

This high price is however expected to fall back below this barrier in the coming week due to lower expected demand compared to last week. Low volumes however may support the price. With this in mind, the price is expected to decrease slightly in the coming week.

The current high level of the tomato price (R8.24/kg) may put a downward pressure on demand in the coming week while lower volumes may support the price. Taking these factors as well as the season trends into consideration, the price is expected to decrease in the coming week.

Similar to potatoes, the onion price also reached new highs the past week when it broke through the R5/kg mark for the first time in 2017. This will most likely put a downward pressure on demand and price in the coming week. However, low volumes may support the price to not fall below the R5/kg mark in the coming week.

Subscribe to the weekly vegetable reports for weekly updates.

Feedlot Industry

  • Article Date: 2017/10/13 | Category: Other

The annual feedlot report as published by AMT highlighted the sensitivity of economic and management factors on the profitability of the feedlot industry using several possible scenarios.  Uncontrollable economic factors including the input (weaner and feed) prices and the output (A2/A3 carcass) price directly influences the profitability of the industry. 

In nominal terms the live weaner price increased more rapidly than carcass prices due to lack of supply in the main production areas. This is the exact opposite of what happened during the 2015/2016 season. The weaner/A2/A3 carcass price ratio is currently (September 2017) at 0.70 which is 0.10 points above the long term average of 0.60; this implies that weaner prices are proportionally high compared to the A2/A3 carcass price.

This scenario, of relatively high weaner prices in comparison with carcass prices, were last evident in 2010. Real (adjusted for inflation) weaner and carcass prices has reached a new high (the previous high was December 2011).

It is expected that weaner as well as carcass prices will remain high but will move sideways during the short-term due to still limited supply, there might be marginal increases in the carcass price towards the end of the year as the festive season approaches. The Southern and Western parts of the country is still effected by prevailing dry conditions which could lead to marginal increases in supply, however the affected areas are not the main cattle production regions.

Producers are currently in a herd-building phase after the prolonged drought caused induced culling practises due to lack of grazing. This is the main driver of the current high demand for breeding animals. The effect of the drought will not be normalised in the short term and could take more than two production seasons.

For the full report, please register and subscribe in our online store. For personalised planning on the feedlot industry please contact Dr David Spies at 018 299 2373.

Mixed outlook for the maize and oilseeds markets

  • Article Date: 2017/09/13 | Category: Other

Oilseeds

The SAFEX price for Soybeans remains down over the medium to long term, with current levels mostly sideways due to the latest harvesting done, and indications of a large crop to be supplied.

SAFEX Sunflower seed found some support in the last week, but also remains mostly bearish over the longer term. Weather will become more of a driving factor in the months to come, before new season  planting decisions are made.

Oilseed Market Expectations:

At the current stage the market seems to be neutral and waiting for news about conditions that will help in decision making for the new planting season. However, sentiment might be of lower prices for the new season.

Maize

Although prices increased compared to last week, it is still significantly lower (57% lower for white maize and 40% lower for yellow maize) compared to a year ago. This happened even though the CBOT Maize price is currently 4.5% higher than the same time last year.

A major contributor to the current low levels of the maize price is high supply levels coupled with a strong exchange rate (R12.93 for 1 US$).

It is furthermore expected that current price levels will continue for the next two to three months as high volumes of maize need to be absorbed by the market. This will most likely result in slightly lower plantings for the 2017/18 production season with the assumption that the major maize production regions in South Africa will receive sufficient rainfall before the coming planting window. This situation may result in a slight upward pressure on the price for 2018.

Maize Market Expectations:

It is therefore expected that the price will remain at current levels for the next week and that a price of between R2050/t and R2100/t can possibly be reached next year at harvesting time.

 

See Weekly Maize and Oilseed Reports for a weekly update and more information

Vegetable Market Overview

  • Article Date: 2017/08/08 | Category: Other

The average weekly potato price increased by 10% from R46.93 to R51.84 per 10kg bag to break through the R50/10kg barrier for the first time in 2017.

This high price is however expected to fall back below this barrier in the coming week due to lower expected demand compared to last week. Low volumes however may support the price. With this in mind, the price is expected to decrease slightly in the coming week.

The current high level of the tomato price (R8.24/kg) may put a downward pressure on demand in the coming week while lower volumes may support the price. Taking these factors as well as the season trends into consideration, the price is expected to decrease in the coming week.

Similar to potatoes, the onion price also reached new highs the past week when it broke through the R5/kg mark for the first time in 2017. This will most likely put a downward pressure on demand and price in the coming week. However, low volumes may support the price to not fall below the R5/kg mark in the coming week.

Subscribe to the weekly vegetable reports for weekly updates.

Agricultural Economic Review

  • Article Date: 2017/07/19 | Category: Other

Global growth is expected to regain some momentum during 2017 due to improved economic activity in Asia. Expectations are that the US will also continue to build on the ground gained in the past year while private consumption in the EU, India and other countries around the world boast well for agriculture in general.

Even though the global economy shows signs of live, the South African economy continue to face several headwinds. These range from policy, business and investor uncertainty that stems mainly from political based decisions and feuds within the ruling party. The impact of the recent downgrades are also likely to become more visible in the months to come. As a result, the prospects of any meaningful economic recovery over the short to medium term has vanished. Coupled with this is the fact that agricultural debt levels continue to rise while solvency ratios are weakening which will add to the already challenging environment for producers. As a result, the likelihood of a cost price squeeze situation is on the rise.

Despite all the challenges, gross farm income remains on the up, net farm income kept trend with gross farm income for most of the past decade and it is expected that the agricultural sector will remain a net exporter in the foreseeable future.