Highlights in today’s morning note
The fruit market saw widespread losses in yesterday’s trade session. The prices of apples and bananas were down by 2% and 15% from the previous day, closing at R7.51 per kilogramme and R4.03 per kilogramme, respectively. This was on a back of large stocks of 293 752 tonnes of apples and 369 984 tonnes of bananas. The price of oranges was down by 13% from the previous day, closing at R3.24 per kilogramme. However, this could be short lived due to relatively lower stocks of 185 370 tonnes, down 17% from the previous day.
As indicated in our previous note, the focus today is on the National Crop Estimate Committee’s seventh maize production estimates which are due for release in the afternoon. Reuters analyst’s survey shows that South Africa’s maize production could be revised up by 1% from the previous estimate to 16.14 million tonnes.
Although the recent rainfall was not sufficient to replenish soil moisture across many fields in the Western Cape province, it benefited the crop as it is currently in a fair condition. With that said, there is an urgent need for follow up rains in order to maintain and possibly improve the crop condition.
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Today the National Crop Estimate Committee will release its seventh production estimates. The current estimate is 1.34 million tonnes, up 81% from the previous season’s production. The harvest process finished on positive footing with exceptional yields reported in many areas.
The South African potatoes market saw substantial gains in yesterday’s trade session with the price up by 4% from the previous day, closing at R33.62 per pocket (10kg). These gains came on the back of relatively lower stocks.