Market Synopsis

Agri Market Synopsis Week 19

Top News: SARB Interest Rates: “The lower rates are positive for the agriculture sector which has been pumping well on the back of favourable conditions and increased its credit demand” –FNB 

“Comparing the final calculated crop figures with the numbers set by the CEC during February 2021, the size of the commercial wheat crop is now 2 120 000 tons, which is 10 900 tons or 0,52% more than the final crop estimate figure of 2 109 100 tons. For malting barley, the recalculated crop size is 588 000 tons, which is 1 846 tons or 0,31% less than the final crop estimate figure of 589 846 tons. The final recalculated canola crop estimate figure is 165 200 tons, which is lower (1 756 tons or 1,05%) than the final crop estimate figure of 166 956 tons. The final recalculated cereal oats crop estimate figure is 57 000 tons, which is 850 tons or 1,51% higher than the final crop estimate figure of 56 150 tons” – DALRRD, Crop Estimates Committee 

“April tractor sales of 540 units were almost 23% more than the 440 units sold in April last year. Year-to-date tractor sales are now 27% up on last year. In April there were 43 combine harvester sales, 23 units more than the 20 units sold in April last year. On a year-to-date basis combine harvester sales are now 29.0% up on last year. Summer crop harvesting is in full swing in some areas. Initial indications are that crop yields are good but, in some cases, due to late rains and early frost, crop quality may have been affected adversely” – Karel Munnik, South African Agricultural Machinery Association

“In South Africa, the demand for dairy products is doing extremely well. In the year which ended in December 2020, the retail sales quantities of seven of the nine dairy products being monitored were between 2.2 to 14.8 percent higher than 2019 while the retail sales quantities of two dairy products were 7.9 and 10.6 percent lower than in 2019, In 2020, the retail sales prices of all nine dairy products increased with from 1.0 to 11.1 percent” – Milk Producers Organisation, Dairy Market Trends

“The average mutton and lamb prices were bullish w/w. The average prices of class A2/A3 and B2/B3 increased w/w by 1.4% and marginally by 0.1% to R87.16/kg and R76.01/kg, respectively. The average price of class C2/C3 increased w/w by 3.5% to R66.96/kg. The average, mutton and lamb prices were about 20% higher y/y. The average prices of South African frozen and fresh chicken increased w/w by 1.2% and 0.6% to R27.76/kg and R27.43/kg. Beef prices traded mixed week-on-week (w/w). The average prices of class A2/A3 and AB2/AB3 increased w/w by 1.6% and 0.5% to R52.68/kg and R51.04/kg, respectively. The average prices of class B2/B3 and C2/C3 decreased w/w by 3.5% and 1.3% to R47.43/kg and R43.74/kg” – Maine Mofokeng, Standard Bank Bi Weekly Report. 

“Our analysis of weekly producer price trends on fresh produce markets shows a mixed trend with the fruit category retaining the downside across most commodities under review while vegetable showed gains led by butternuts with a sharp increase of 54.8% y/y in last week’s trade. With the rainfall season now behind us in the summer growing areas, the Eastern Cape remains a concern as critical irrigation dams such as the Kouga an Waterdown are entering winter at low levels of 4.3% and 23.4% respectively” – Paul Makube, FNB Agri Weekly 

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