The forecast rainfall for this week will not have much influence as the maize crop is already maturing. With that said, these showers could improve dam levels and benefit the irrigation areas later in the season.
Although a net importer of wheat, South Africa continues to export wheat to regional markets. In the week ending 17 March 2017, total exports reached 4 903 tonnes, all went to regional markets. Overall, South Africa’s 2016/17 total wheat exports currently stand at 47 903 tonnes. About 46% of this went to Zimbabwe, 9% to Namibia, 9% to Botswana, 24% to Lesotho, 6% to Mozambique, 3% to Zambia and 3% to Swaziland.
There was not much activity in the US soybean market. The focus is on next week’s prospective plantings data, which is expected to show a decline in US maize area, with farmers favouring soybean crop due to better profitability levels. Recent data from Alledale Inc suggested that 2017/18 soybean plantings could reach 35.9 million hectares, up by 6% from the previous season. Moreover, this is slightly above the USDA’s estimate of 35.6 million tonnes.
From the demand perspective, China is likely to remain a key player in the global soybean markets. The USDA Attaché in Beijing forecasts the country’s 2017/18 soybean imports at 89 million tonnes, up by 2% from the previous season. This will be a record level and key suppliers will most likely be Brazil, Argentina, as well as the US.
The South African potatoes market gained ground during yesterday’s trade session, with the price up by 13.64% from the previous day’s level, closing at R28.33 per bag (10 kilogrammes). These gains were mainly on the back of lower domestic stock levels, which were reported at 715 137 bags (10 kg bags) by the start of the session.
However, with long weekend over and people back at work, the market saw an uptick in deliveries during the session and that led to a 36% increase in daily stocks to 974 562 bags (10 kg bags).
The Johannesburg Fresh Produce Market saw widespread losses during yesterday’s trade session. The apple price was down by 4.87% from the previous day’s level, closing at R7.22 per kilogramme. This was largely due to large supplies of 223 780 tonnes (up by 31% from the previous day).
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