The recent update for the week ending 31 July 2017 shows that dams averaged 27%, compared to 55% in the same period last year. The medium term forecasts present some hope, as the South African Weather Service’s indicated that there is a possibility of wetter conditions in the south western parts of the country between August and October 2017.
Highlights in today’s morning note
Last week, the Southern Cape region of the Western Cape province received light showers of between 3 and 6 millimetres, which is not sufficient to make an improvement on crop conditions. Meanwhile, other regions of the province remained dry and cool. Overall, the crop is not in good shape and urgently needs moisture in order to develop well this season.
The lower maize prices that were seen in the past few days sparked buying interest amongst market participants, thus leading to bargain-buying in Friday’s trade session. Moreover, the weaker Rand against the US Dollar, as well as higher Chicago maize prices also added support to the maize market.
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There was not much happening in the domestic soybean market as harvest process is already complete. Looking ahead, the domestic soybean market will largely be guided by the Chicago (soybean) price and domestic currency movements.
The harvest process is virtually over with few patches left in the western areas of the North West province. The forecast dry and warm weather conditions within the next two weeks could allow farmers to complete the process smoothly.
The South African potatoes market lost ground in Friday’s trade session and closed in negative territory due to relatively large stocks of 1.21 million bags (10kg pockets/bag). The price was down by 2% from the previous day, closing at R28.46 per 10kg pocket.
In Friday’s trade session, there was not much happening in the SAFEX beef carcass market. The price remained unchanged from the previous day, closing at R46.00 per kilogramme. However, it is worth noting that the SAFEX beef carcass prices could differ from the physical market due to thinly traded volumes at the stock exchange.
The fruit market ended the day mixed in Friday’s trade session. The prices of apples and bananas were down by 5% and 4% from the previous day, closing at R7.14 per kilogramme and R5.66 per kilogramme, respectively. Meanwhile, the price of oranges gained 0.34% from the previous day, closing at R2.95 per kilogramme.