Highlights in today’s morning note
The fruit market was once again mixed in yesterday’s trade session. The price of apples was down by 2% from the previous day, closing at R7.16 per tonne due to large stocks of 240 969 tonnes. Meanwhile, the other products managed to claw back the recent losses due to strong buying interest and a subsequent decline in daily stocks. The prices of bananas and oranges were up by 1% and 10% from the previous day, closing at R6.04 per kilogramme and R3.20 per kilogramme, respectively.
In areas that have already harvested, farmers received exceptional yields which support the National Crop Estimate Committee’s view of a possible record crop of 15.97 million tonnes this season. This is well above the 2016/17 crop of 7.78 million tonnes and a long term average production of 12.50 million tonnes.
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The weather forecast has changed drastically. It currently shows a possibility of rainfall of between 16 and 30 millimetres across the Western Cape province within the next two weeks. This will not be sufficient to improve soil moisture but could bring relief after weeks of dryness. In order to realise notable improvements, the province needs roughly 60 millimetres.
In the absence of major data releases, the domestic soybean market performance will largely be guided by the Chicago (soybean) price and domestic currency movements throughout the week.
Large daily potatoes stocks of 1.049 million pockets (10kg) at the start of yesterday’s trade session added bearish pressure to the market. The price ended the day in negative territory, down 2% from the previous day and closing at R28.32 per 10kg pocket.