The country will have over 4.00 million tonnes of maize in total as an exportable surplus for the 2017/18 marketing season.
Highlights in today’s morning note
After the National Crop Estimate Committee revised its maize production forecast to 15.96 million tonnes in July, it has further lifted its forecast to 16.41 million tonnes – making this season’s crop the largest on record. White and yellow maize production estimates were revised up by 2% and 5% respectively from the previous estimate to 9.65 million and 6.76 million tonnes. In total, reaching a record level of 16.41 million tonnes.
The National Crop Estimate Committee’s first production estimate for wheat confirmed the market expectations of a possible lower harvest due to continuous drier weather conditions in key wheat producing provinces, as well as a decline in acreage.
It almost seems as if the market has run out of the bullish news, the spot and March 18 contract month prices opened lower in yesterday’s trade session and remained under pressure throughout. The relatively stronger domestic currency, selling pressure and lower Chicago soybean prices were the key factors driving the market.
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The National Crop Estimate Committee surprised the market with an upward revision of 6% in sunflower seed production from the previous estimate to 870 095 tonnes. This is 15% higher than the previous season due to an increase in area plantings, as well as higher yields.
SAFEX Beef Carcass:
At the risk of sounding like a broken record, it was again a quiet day in the SAFEX beef carcass market. The price remained flat at R46.00 per kilogramme due to thinly traded volumes. This means that the SAFEX beef carcass prices could differ from the physical market prices.
The fruit market closed on a mixed footing in yesterday’s trade session. The prices of bananas and oranges were up by 13% and 5% from the previous day, closing at R4.54 per kilogramme and R3.40 per kilogramme, respectively. Meanwhile, the price of apples was down by 3% from the previous day, closing at R7.28 per kilogramme.