Frikkie Maré, agricultural economist at the University of the Free State (UFS), gives his monthly market overview of agricultural commodity markets.
Although the price of yellow maize fell further during harvest time, it did so at a much slower rate than earlier this year. By the end of June, the price of yellow maize closed at R1 829 per tonne.
The rand is competing relatively well against the dollar, but lost ground against the euro, causing the gap between the value of the dollar and euro to grow even larger. The rand traded at R13,05 against the dollar and at R14.91 against the euro by the end of June.
Both producer and consumer price inflation increased slightly during May, with the consumer price index (CPI) increasing by 5.4% and producer price index (PPI) increasing by 4.8% during the same time.
Where the price of A grade beef stabilised during June, trading sideways, other red meat prices reacted erratically. The price of B and C grade beef and all grades of mutton increased, but the price for weaner calf fell during the last week of June. Weaner lamb prices on the other hand continued to rise.
The price of clean wool was set back further during the last auction in June and was only 0.1% higher than last year. The price for mohair also weakened during the last auction of the season and was almost 25% lower than last year.
The producer price for milk and dairy remained relatively constant in May, but the consumer price for milk, eggs and cheese increased.