The weather remains a key focus in the South African grains and oilseeds market, as the summer crop planting process progresses. Fortunately, the incoming weather forecast data paints a picture of good rainfall throughout the 2017/2018 production season.
A recent report from the Australian Bureau of Meteorology confirmed a development of La Niña in the 2017/2018 summer period. This essentially means that countries such as South Africa could receive above normal rainfall between December 2017 and February 2018, which bodes well for crops.
Overall, these weather developments, coupled with a relatively strong domestic currency and large stocks, added bearish pressure across the board, with grains and oilseeds prices ending the week (8 December 2017) in negative territory when compared to last week’s levels (ending 1 December 2017).
Fruit and vegetable prices were volatile during the week with lower stock levels driving the market. The SAFEX beef carcass market remained flat this week due to thinly traded volumes.
The calendar for the week ahead is fairly light with only weekly grain trade and deliveries data due for release.