Frikkie Maré, agricultural economist at the University of the Free State (UFS), gives his monthly market overview of agricultural commodity markets.
Agricultural market overview
During August the price of yellow maize traded sideways and closed at R1 900 per tonne.
The Rand strengthened slightly against the Dollar but traded sideways against the Euro. By the end of August the Rand traded at R12,97 against the Dollar and R12,97 against the Euro.
Both producer and consumer inflation escalated at a slower rate in June with the Consumer Price Index (CPI) at 4.6% at a year-on-year basis and the Producer Price Index (PPI) at 3.6% during the same period.
The price of all grades of beef decreased slightly during August, whereas for mutton all grades of meat traded sideways. In the case of weaner calves and lambs both saw a decrease in prices.
Clean wool prices traded approximately 20% higher during the first auction of the season in August compared to prices seen on the last auction of the previous season. Although the price of clean wool decreased slightly during the second auction, the Indicator price is still 16% higher than last year.
The mohair market also kicked the season off on a high note with prices trading 10% higher than last year and 4.6% higher than the last auction of the previous season.
The producer price of milk remained constant in July while the Index for milk products increased slightly. The CPI of milk, eggs and cheese also increased further. –Market report
Market overview graphs
For the July market overview see below: