As expected, the national average weaned calf price for bulls between 200 and 250 kilograms has started to decrease a bit and is now trading at R34.03 per kilogram, with “out-of-hand” sales rising to R35.63 per kg. Lighter bulls between 160 and 200 kilograms decrease to R33.01, while heavier bulls between 250 and 300 kilograms dropped to R32.28 last week. Bulk bulls, which average 221kg, are priced at R33.61, with varying bulls averaging 227kg now priced at R32.02. The average price in the Free State remains relatively high at R35.37, while the price in the Northern Cape dropped to R33.43 last week. We are trading very close to the price levels we saw in 2020 and remain below the past 4 years’ prices. Unfortunately, we are now entering the weaning period, and calf prices are expected to be further suppressed until about June. However, I am positive that the decrease will not be as sharp as the previous two years, and it seems that the average price should remain around the R31 mark, with a low point expected by the end of June. Unfortunately, slaughter prices are also falling, with the A2/3 carcass price now at R55.24, while the C-grade price rises to R47.62 per kilogram. We still expect slaughter prices to start rising from March to May. The average cow price last week was R10,969 per head or R21.26 per kg, pregnant cows at R15,783, and cows with calves at R14,933. The latest bull price came in at R20.67 per kilogram.
As expected, the average feeder lamb price has increased by 4% to R40.85, with the slaughter lamb price higher at R41.58 per kilogram. Direct feeder lamb prices are also rising, trading at R40.96, while direct slaughter lamb prices rise to R41.46 per kilogram. The average feeder lamb price in the Free State increases to R40.84, with the price in the Western Cape at R41.50 per kilogram. We are about 13% above last year’s price levels but still below the levels we saw in 2022. In March, we may still see sideways prices, but the price from April to June should follow a strong upward trend, and there is a possibility that we might reach R50 again by the end of June. My personal feeling is that we might just miss that mark this year.
Slaughter prices have risen, with the A2/3 at R99.67 per kilogram, while the C2/3 price rises to R65.37 per kilogram. The expectation is that A2/3 prices may sharply increase from mid-March and possibly reach a peak by early July. That peak is currently expected to be R116 per kilogram, but I will keep you updated as it develops.
The RWS clean wool price rose last week to R178.03 per kg, while non-RWS wool prices also rose to R173.25 per kilogram. Wool prices in Australia have also risen by about 1% to an average price of AUD $11.95 per kilogram. Competition among buyers at the auctions in Australia was strong, which lifted all prices last week. The demand was particularly strong and led the market upwards. There is a lot of positivity that the wool market’s profitability is recovering and that the demand for wool may pick up again this year.
The chicken market has been under pressure due to the financial year-end, with buyers not wanting to carry stock, which has kept prices very suppressed. The frozen ex-abattoir price has dropped to R32.94, fresh prices to R34.56, and the IQF price has dropped to R33.29 per kilogram. My feeling is that we could stay close to these price levels until the end of March and then see some increase in April and May.
Pork prices, however, broke their declining trend last week and the latest bacon pig price increased by 1% to R32.37, the pork price increased by 0.4% to R32.64, while the latest sausage pig price remained unchanged at R25.64 per kilogram. The expectation is still that prices may decline slightly, but we could maintain better prices than last year due to lower supply. We may also see better prices from mid-July.
Goat prices had mixed results last week, with the latest large goat price lower at R30.54, small goat prices rising to R49.56, medium goat prices dropping to R44.85, while goat ewe prices rise to R38.43 per kilogram. Goat prices should start rising just before winter and peak at the end of winter or early spring, and then typically drop again towards Christmas.
Lucerne prices remain at current levels, with the latest average Grade 1 lucerne price at R3100 per ton, prime lucerne at R3750, and Grade 2 lucerne at R2500. The import parity price for soybean meal trades higher at R11,417, with domestic prices between R7500 and R7700 currently. Yellow maize prices also dropped to R4815 per ton on Monday, with sunflower now at R8999 per ton.
The demand for chop remains very low, but there was a slight correction last week, with prices rising to R3350 per ton. Load-shedding also caused a shortage over the weekend, which helped push prices up. However, the expectation is that chop prices could rise slightly due to better demand, but the availability of silage keeps prices at a lower level.
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