Frikkie Maré, agricultural economist at the University of the Free State (UFS), gives his monthly market overview of agricultural commodity markets.
During July the price of yellow maize traded sideways and closed at R1 909 per tonne. Although the Rand strenghtened, it lost ground against the Euro and the Dollar, while the difference between the euro and the dollar increased further. At the end of June the Dollar traded at R13,16 against the Rand and the Euro at R15.59.
Both producer and consumer price inflation increased at a slower rate during June, with the consumer price index (CPI) increasing by 5.1% on a year on year basis and the producer price index (PPI) at 4%.
The price of A grade beef decreased, but B grade meat traded sideways and C grade meat increased. For lamb the price of all grades increased sharply. The price of weaner calves plateaud and decreased slightly while the price of weaner lambs increased sharply.
During the last auction of the season in June, the price of clean wool decreased further and was only 0.1% higher than a year ago. The price of mohair also weakened during the last auction and was almost 25% lower that the previous year.
The producer price of milk and dairy as well as the consumer price for milk, eggs and dairy increased slightly in June.