The stronger domestic currency, coupled with prospects of rainfall across the summer crop growing areas, and large carryover stocks in the 2017/2018 marketing year led to widespread losses in the South African grain and oilseed markets this week (ending 23 February 2018).
The notable losses were on white maize, with the spot price down by 2%, from last week (ending 16 February 2018). All other crops recorded marginal declines of roughly 1% from the previous week (ending 9 February 2018).
The week ahead is data-packed, but the most anticipated release is the National Crop Estimates Committee’s first production estimate for the 2017/2018 summer crops. The sentiment in the market is fairly positive following good rainfall in the past few weeks. However, major grains such as maize could decline by a third from the 2016/2017 production season due to a reduction in area planted.
The fruit and vegetable prices were volatile this week (ending 23 February 2018) with large daily stock levels underpinning the market. After months of experiencing limited activity with almost no movement in prices, the SAFEX beef carcass market recorded marginal gains this week (ending 23 February 2018).