Market overview for September 2018

stux via Pixabay

Maize market

Although the price of yellow maize traded upwards in the beginning of September, the price started declining towards the end of the month, closing at R2 352/ton.

Economic indicators

The Rand lost ground against the major currencies in September, but fortunately gained ground again towards the end of the month to close at R14,12 and R16,39 respectively against the Dollar and the Euro. Consumer price inflation (CPI) decreased slightly to 4,9% while producer price inflation (PPI) increased to 6,3%. Economic growth, as represented by GDP in the second term of 2018, increased with 0,4% year-on-year.

Red meat market

The price of A and C grades beef carcasses decreased in September, while the price of B grades was volatile. The most recent prices available were R45,77/kg for A2, R42,13/kg for B2 and R40,02/kg for C2. For mutton, the prices of A2 and B2 carcasses decreased while prices for C2 increased sharply only to decline again. The last available prices for A2, B2 and C2 lamb and mutton carcasses were R76,54/kg, R64,55/kg and R61,24/kg respectively. The price of weaner calves decreased while the price for weaner lambs was volatile. The price for hides improved slightly whereas Dorper and Merino skins traded sideways volatilely.

Wool and mohair market<

During the last auction of the month, indicator prices for wool declined with 5,6% compared to the previous auction, but still traded 22,7% higher than the previous year. The indicator price for mohair decreased by 6% compared to the previous auction, yet traded 30,8% higher than last year.

Dairy market

The producer price index for milk and eggs, as well as that of dairy products, decreased in August. The consumer price index for milk, eggs and cheese also decreased during the same period.