Frikkie Maré, agricultural economist at the University of Free State, gives his monthly market overview of agricultural commodity markets.
The price of yellow maize increased slightly in October, before trading sideways and closing at R3 252/ton. However, during the same period the rand strengthened and traded at R13,74 against the dollar and R15,07 against the euro. The good news is that producer price inflation (PPI) fell in September on a year-on-year basis. On the other hand, consumer price inflation (CPI) increased and is once again above the 6% target.
The prices of lamb and mutton declined drastically towards the end of October, while that of beef remained relatively constant. The price of wool fell by 0,9% at the last auction of October. The price of mohair increased by 0,9%. Over this period, the consumer price for milk, eggs and cheese also increased slightly. – Market report