South African Agricultural Commodities Weekly Wrap
Today the focus will be on the CEC’s sixth production estimate
July 26, 2018
Spotlight on SA wheat market
July 30, 2018
- The weather was again a key focus this week after the South African Weather Service’s seasonal climate watch presented a mixed picture for the next couple of months.
- On the one hand, the agency noted that the western coastal regions of the country, which include the Western Cape, could receive above-normal rainfall between August and October. This is a welcome development for winter crop growing areas, following a drought season.
- On the other hand, the agency indicated a likelihood of El Niño occurrence in the 2018/19 summer crop production season, which commences in October. These, however, are still preliminary estimates; we will get clear guidance within the next two months.
- In the near term, this will have minimal impact on grain prices as the market is well supplied on the back of a large harvest.
- Looking ahead, the data calendar for next week is fairly light with no major releases.
- Apart from grain and oilseed markets, the SAFEX beef carcass market experienced a quiet week with prices unchanged from levels seen last week. In terms of the beef supply, the South African farmers slaughtered 190 454 head of cattle in June 2018, down by 14 percent from the corresponding period last year.
Click HERE to read the full report by Wandile Sihlobo
