The stronger domestic currency, coupled with prospects of rainfall across the summer crop growing areas, and lower Chicago grain prices led to widespread losses in the South African agricultural commodity markets this week.
The notable losses were on white and yellow maize with spot prices down by 6% and 3%, respectively, compared to the previous week. The soybean and sunflower seed prices were down by 2% and 1% from last week, respectively.
The week ahead is data-packed, but the most anticipated release is the National Crop Estimate Committee’s preliminary plantings data for summer crops. Analysts survey suggest farmers were unable to successfully plant the intended area in the western parts of the country due to persistent dryness. The extent of this will be clear next week.
The fruit and vegetable prices were volatile this week with lower daily stock levels underpinning the market. The SAFEX beef carcass market remained flat this week due to thinly traded volumes.
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