This was a data-packed week for grain and oilseed markets, with the most notable release being the National Crop Estimates Committee’s first production estimates for 2017/2018 summer crops, and the 2017 winter wheat final production estimates.
From the summer crops perspective, the 2017/2018 production is set to decline by 25% year-on-year (y/y) to 14.6 million tons. White maize and sunflower seed production are the key reason for this overall downswing. The winter wheat production estimate was revised up by 3% from the previous month to 1.5 million tons, which is, however 21% lower than the 2016 harvest.
Overall, this data was slightly better than market expectations but had limited impact on this week’s (ending 2 March 2018) prices. The grain and oilseed market ended the week on a positive footing, with commercial buying interest, slightly weaker domestic currency and higher international prices providing support.
Apart from grains and oilseeds, the fruit and vegetable prices were volatile this week with large daily stock levels underpinning the market. The SAFEX beef carcass market recorded marginal gains from levels seen last week (ending 23 February 2018).