Market Synopsis

Agri Market Synopsis -Week 05

Agri-Market Synopsis is a weekly agricultural markets economic insight sourced from various agricultural commodities.

Wines:
“Despite the restriction, the wine industry’s value in exports grew by 7.7% to about R9.1 billion in 2020, however the local sales declined due to the ban in local sales. It is stated that the industry is sitting with surplus stock and storage might be running out. This could have a long-term impact on jobs and the sustainability of the sector” – National Agricultural Marketing Council, Market Intelligence Weekly Report.

Fresh Produce

Vegetables:
“The current potato and carrot prices are 159% and 20% higher respectively relative to the same week in 2020. They were followed closely by tomatoes and butternuts with weekly gains of 27.9% and 21.8% respectively w/w but still down by 20.8% and 25.5% y/y at R7.71/kg and R2.54/kg. Onions were the only exception and posted sharp losses of 6.3% w/w and 6.8% y/y to close the week at R3.53/kg.

Fruits:
In the fruit complex, early February gains were reversed as higher volumes hit the markets. Pears led the pack with weekly losses of 17% at R37.51/kg but still 3% higher y/y. Apples and avocados prices fell by 12.6% and 9.7% respectively w/w at R10.09/kg and R30.19/kg. Apples were however 11.7% higher y/y while avocados retained the downtrend with a whopping 28% decrease relative to the same week in 2020.” – Paul Makube, FNB, Agri Weekly

Grains

Maize:
“The local maize market received mostly support yesterday on all the contracts listed for white and yellow maize. The white maize market traded R19 / ton higher for delivery in July 2021 for the day to close at R 3 140 / ton. The yellow maize market traded R23 / ton higher for delivery in July 2021 to close at R 3 265 / ton.”

Soybeans:
“The local soybean market traded volatile for the day yesterday but mainly closed the day’s trades strongly over some contract months currently listed. The local soybean market traded for delivery in May 2021, R10 / ton higher for the day to close at R7 710 / ton.’

Wheat:
“The local wheat market came under pressure yesterday and ended weaker over the majority of listed contracts. The local wheat market traded R 8 / ton lower for delivery in July 2021 and closed at R 5 230 / ton.” – Ikageng Maluleke, Grains SA, Morning Grain Market Commentary.

Meat

Mutton and Pork:
“The average prices of class A2/A3 and B2/B3 decreased w/w by 2.1% and 2.9% to R81.04/kg and R65.56/kg, respectively.  On the hand, the average prices of class AB2/AB3 and C2/C3 increased w/w by 10.8% and 1.6% to R78.55/kg and R67.84/kg, respectively. On average, mutton and lamb prices were about 22.3% higher y/y.

The average baconer and sausage prices decreased w/w by 0.2% and 1.4% to R30.44/kg and R24.77/kg, respectively. The average porker price increased w/w by 0.4% to R34.08/kg.”

Broiler:
“The broiler market was bullish.  The average prices of South African frozen and fresh chicken increased w/w by 1.5% and 2.5% to R26.36/kg and R25.91/kg, respectively.  The average price of IQF increased w/w by 3.2% to R24.02/kg.  These prices are still lower than prelockdown prices and they are 1.8% lower y/y on average.  Overall, broiler prices are expected to remain low on the back of surplus stock entering the market.” – Maine Mofokeng, Standard Bank, Livestock Bi-Weekly Report

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