The South African Weather Service showed that there’s a possibility of above-normal rainfall in the north-eastern parts of the country between October and December 2017 . This coincides with the planting period and could aid seed germination.
Highlights in today’s morning note
South Africa’s maize supplies are in good shape, estimated at 16.7 million tonnes (including opening stocks and commercial deliveries). This is 36% higher than the previous season’s supplies and well above the domestic annual consumption is 10.5 million tonnes.
The weather remains a primary focus in the domestic wheat market as the crop approaches the pollination stage of development which requires high moisture. Unfortunately, the outlook is bleak. In its recent Seasonal Climate Watch report, the South African Weather Service indicated that the south-western parts of the country could remain fairly dry over the foreseeable future.
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Yesterday was a quiet session in the domestic soybean market and the data calendar for the rest of the week is fairly light, as it is an off season period with not much activity in the fields. Therefore, market performance will largely be guided by the Chicago soybean price and domestic currency movements over the next few days.
The South African potatoes market saw extended losses in yesterday’s trade session with the price down by 2% from the previous day, closing at R38.79 per pocket (10kg). These losses were partly on the back of relatively large stocks of 946 022 pockets (10kg bag) at the start of the session.
The fruit market was once again mixed in yesterday’s trade session. The price of apples fell by 3% from the previous day, closing at R7.24 per kilogramme due to commercial selling. Meanwhile, the prices of bananas and oranges were up by 1% and 19% from the previous day, closing at R5.87 per kilogramme and R3.35 per kilogramme, respectively.