On SAFEX, the white maize spot price further decreased week-on-week to R4801, while the July price fell to R4821 per ton. The yellow maize spot price dropped to R3880, while the July price decreased to R3963 per ton. The soybean spot price fell to R8750, with the July price lower at R8895 per ton. The sunflower spot price decreased to R8930, while the July price dropped to R9122 per ton.
The stronger Rand continues to put a lot of pressure on most import parity prices, consequently driving SAFEX prices downwards over the past week. The election results will certainly impact the exchange rate, the question is whether it will have an upward or downward effect. If the ANC gets below 50% and there is more uncertainty about a coalition government, it could scare investors and weaken the Rand, possibly having an upward effect on SAFEX prices. On the international front, prices have dropped again due to funds starting to sell off, so we can expect lower prices for the week. It seems the Americans are starting to experience weather problems, which might provide some support if it worsens over the next few weeks. However, exports, especially for soybeans from the US, are at record lows, keeping prices relatively low. This, along with local harvest pressure, may keep our local maize and soybean prices suppressed for now.
The wheat spot price rose to R6477 this past week, with the December price slightly lower at R6370 per ton. Large funds remain the biggest drivers of the wheat price, and it now looks like they are getting sell signals which might reverse the upward momentum of wheat.
The bitter sorghum price currently trades between R5200 and R5400 per ton, while sweet sorghum trades closer to R6500 per ton. However, the sorghum import parity price landed in Durban has dropped to R5750 per ton. The average sugar bean price trades at R30 750, remaining between R30500 and R31000 per ton delivered, the producer import parity price of shelled Argentine peanuts dropped to R28 199 per ton, while the cotton import parity price further decreased to R10 932 per ton.
