Market Synopsis

Agri Market Synopsis Week 20

Top News: “Agro-chemical and fertiliser prices remain high due to demand in the Northern hemisphere for the planting season, fuelled by increasing commodity prices, with favourable weather in key consuming countries. Increases in the Brent Crude oil prices also drive-up production- and transport costs” Grain SA

“Looking forward to 2021, it’s anticipated that soft citrus and oranges will increase by a further 200 000 t, lemons by 100 000 t while grapefruit almost flat again. This translates to a 12% increase in orange exports (compared to 2020); 20% increase in soft citrus exports; 7% increase in lemon exports and 10% increase in grapefruit exports.  In terms of southern hemisphere orchards, area under oranges (136 000 hectares) and grapefruit (13 400 ha) are flat. Lemons have increased from 60 000 ha in 20112 to 86 000 ha in 2020. Similarly, soft citrus increased from 64 000 ha (2012) to 85 000 ha (2020)” – Justin Chadwick, Citrus Growers Association 

“The sixth sale of the 2021 summer season took place in Port Elizabeth with 96 265 kg on offer of which 98% was sold. The offering consisted of excellent individual clips which attracted good competition between buying houses. Although the SA currency traded stronger compared to the previous sale, the demand for mohair remains strong, combined with the excellent individual clips on offer, resulted the average market indicator to increase by 2% (3% in dollar terms) to close on R394.97 p/kg. A highest price of R922.00 p/kg was paid for a bale of superstyle 23-micron kid mohair. Compared to the previous sale, prices were as follows: Kids Up 2%, Young Goats Unchanged, Fine Adults Up 4% Strong, Adults Down 3% Average Up 2%” – Mohair SA, Market Report 

“Latest fruit export figures so far show good progress across most commodities except for lemons whose volumes for the year to week 20 of 2021 (YTD) are down 8% year-on-year (y/y) at 9.56 million cartons (figure a1). Major buyers for the YTD are the Middle East, the Russian Federation, Europe, and South East Asia with shares of 48%, 17%, 14%, and 11% respectively. Other destinations include the UK and North America at 4% and 5% respectively (figure b5). Although Asia’s share of total shipment is only 1%, the region recorded the biggest growth of 339% y/y in volumes which is a good indication of gradual diversification of markets” – Paul Makube, FNB Agri Weekly 

“After a 1-week recess, a larger offering of 13 459 bales was available for sale in South Africa this week. An amount of 550 bales was withdrawn prior to the sale. The market eased by 4% to close on R157,52 p/kg, with an overall sales clearance of 95,65%. The stronger SA Currency had a negative impact on the market, with the rand trading 2,8% stronger against the US$, with the market yielding a negative return of 1,2% in US$ terms. The majority of the offering consisted of merino wools in the 20 micron and finer category of medium length” – Cape Wools SA, Market Report 

“There have been decreases for all insecticides of between 1.5% and 28% in Rand value. This trend is in contrast to the international price trend, which indicate increases for half of insecticides of up to 26% in dollar terms and those decreasing only moderately up to 7.6%. Naturally, South Africa usually follows the international price trend, however, the impact of the stronger Rand is seen by the magnitude of the decrease in Rand terms, while international prices are increasing” – Ikageng Maluleke, Grain SA 

“Beef: Class A beef prices decreased marginally week on week and increased by almost 1% since mid-April. Prices are however more than 20% higher than a year ago. In the South African context producer margins are under increased pressure with maize prices roughly 30% higher compared to a year ago. Mutton: Carcass prices of lamb and mutton are finding continued support from lower slaughter numbers. Slaughter numbers released for 2021Q1 are 3.5% lower compared to 2020Q1. This is expected to have continued into April and May 202. Pork: Pork prices increased for all periods under consideration whilst baconer prices decreased by 4.5% week on week and 5.9% month on month. Prices are however still substantially higher compared to a year ago. Poultry: Year on year increase is between 15.9% and 23.7%. With maize prices, about 30% compared to last year it shows that margins are increasingly under pressure” – Abrie Rautenbach and Marlene Louw, ABSA Agri Trends Livestock Report

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