Top News: “Potato prices for week 16 decreased w/w by 10% to R3 739/ton due to lower market demand. Market volumes also declined by 3% w/w closing at 47 554 tons. Prices are expected to move upwards this week as the market moves into a phase of higher demand and lower volumes” – Standard Bank
DAIRY
“The January 2021 national average production of unprocessed milk was calculated at R5,37. For February 2021 it was at R5,75 with further buoyancy present in the price. Market information indicates the price is set to increase to an approximate average of R6,00 in March 2021.
The milk:feed price ratio was dangerously low from August 2020 to December 2020 and for January 2021 it was only marginally higher than a ratio of 1:1. The ratio improved significantly in March 2021 due to the better producer prices and lower grain prices. A ratio of 1,4:1 is needed for reasonable levels of profitability at farming level” – MPO Newsletter Bulletin
GRAINS
Maize: exports for the week ending on 30 April were 45 946 tons, with 11 967 tons from white maize and 33,979 tons of yellow maize. The majority of yellow maize (30 685 tons) was exported to Japan. Botswana (3 806 tons) and Namibia (3 471 tons) contributed the most towards white maize exports. White maize futures contracts in July traded R57 per ton higher and closed the session at R3579 / ton. Yellow maize futures contracts in July traded R59 per ton higher and closed the session with R3727 / ton.
Soyabean: Local soybean futures traded moderately higher yesterday compared to the two days prior. July soybean futures traded R10 higher and close the session off at R7642/ton.
Wheat: local wheat futures traded mixed, with front months on a high and back month in the red. July wheat futures traded R17 higher and closed the session off at R5193/ton. Wheat imports for the week ending April 30, totalled 20 238 tons, with a cumulative total of 920 688 tons.” – Ikageng Maluleke, Grains SA, Marketing Commentary.
FRUITS & VEGETABLES
“Vegetables: Onion prices decreased by 6% w/w to R4 030/ton due to lower demand. Volumes sold also decreased marginally by 2% w/w to 3 998 tons. Prices are expected to move downwards as lower demand trends into this week. Carrot prices decreased by 11% w/w to R4 690/ton due to lower demand. Market volumes sold decreased marginally by 1% w/w to 2 237 tons. Prices will most likely increase this week on higher demand and lower market volumes.
Fruits: Apple prices marginally decreased by 1% w/w to R7 390/ton and they are expected to maintain a downward trend for the current week. Volumes decreased by 2% w/w to 3 102 tons. Average orange prices went up by 5% w/w to R3 840/ton, mostly due to lower volumes entering the market and higher demand. Market volumes declined sharply by 15% w/w to 1 918 tons. Prices are being supported by better quality and higher demand.” – Noluthando Ngwenya, Standard Bank Bi-Weekly Report.
SORGHUM
“Sorghum production in South Africa decreased over the past two decades as producers preferred to plant more profitable crops, like corn and oilseeds. Post estimates that the decreasing trend in sorghum production will continue in the 2021/22 MY, although sorghum production increased to a 7-year high of 189,885 tons in the 2020/21 MY, on favorable weather conditions. Post estimates a 16 percent drop in sorghum production to 160,000 tons in the 2021/22 MY, on eight percent less area. As a result, Post estimates sorghum imports for the 2021/22 MY will increase to 20,000 tons. On the other hand, a significant drop in sorghum imports is expected in the 2020/21 MY, after a 20 percent increase in production. Through the past five years the United States established itself as the major supplier of sorghum to South Africa.” – USDA, Foreign Agriculture Service
