Highlights in today’s morning note
Interesting to note is that the International Grains Council (IGC) is even more optimistic on South Africa’s maize production, estimating the overall crop at 16.4 million tonnes, compared to 7.8 million tonnes in the previous season. The harvest process is in full swing with reports of exceptional yields across the country. The process could gain momentum within the next two weeks due to expected warm weather conditions in the maize belt.
The South African Weather Service noted that there is a possibility of wetter conditions in the south western parts of the country between August and October 2017. This will be a welcome relief after weeks of dryness in the Western Cape province during the first half of their traditional rainy season.
As indicated in our note yesterday, South Africa’s soybean supplies for 2017/18 season could reach 1.41 million tonnes. This includes an opening stock of 84 792 tonnes, as well as commercial deliveries of 1.31 million tonnes and a small volume of imports. This is 30% higher than the previous season.
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Although South Africa generally expects a good sunflower seed harvest this season, the areas that planted late in a season received lower yields of between 0.6 and 0.7 tonnes per hectare. The country’s sunflower seed production estimate is 821 970 tonnes, up 9% from the previous season.
Yesterday the South African potatoes market managed to claw back some of its recent losses with support coming from lower stock levels. The price was up by 0.49% from the previous day, closing at R28.45 per 10kg bag.
The fruit market started the week on a mixed footing. The prices of apples and bananas were up by 9.37% and 0.15% from the previous day, closing at R7.59 per kilogramme and R6.86 per kilogramme, respectively. The apples stocks were down by 9% from the previous day easing at 215 990 tonnes. At the same time, the bananas daily stocks fell by 23% to 157 050 tonnes. Meanwhile, the price of oranges fell by 16% from the previous day, closing at R2.79 per kilogramme.