Good performance in SA tractor sales ahead of the planting season.

South African Agricultural Commodities Weekly Wrap.
September 8, 2017
Dam levels show slight improvement.
September 11, 2017

Good performance in SA tractor sales ahead of the planting season.

The sustained good performance in the domestic currency over the past few months, coupled with a large domestic grain and oilseed harvest boosted tractor sales in August 2017.

Although grain and oilseed prices remain depressed, the higher yields per hectare have, to some extent, improved farmers’ incomes. The tractor sales were recorded at 583 units – up by 16% from July 2017 and 27% higher than the corresponding period last year. More importantly, this ahead of the new production season which commences next month, thus signalling farmers’ readiness for the upcoming season.   

Soil preparations for the 2017/18 summer grain and oilseed production season typically starts in October in the eastern parts of the country. Meanwhile, the western areas only begin in November. Apart from the sales, the upcoming season could be normal with average rainfall, which bodes well for summer crops.

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Contrary to tractor sales, the combine harvester sales fell by 8% m/m, with only 12 units sold in July 2017. This is a lowest sales figure in eight months, not surprising as it a downtime with the farmers preparing for the new summer crop season. The winter production areas are still far away from harvesting.

 

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