The national average weaner calf price increased by 2.7% to R30.48 per kilogram for calves weighing between 200 and 250 kg. The price is still nearly 9% lower than what we saw a year ago. Last week, the spot sale price was R30.35 per kg for this weight class. Lighter calves under 200 kg rose to R31.52, while heavier calves over 250 kg traded at R28.61. The average price in the Free State is R29.35, while the price in KwaZulu-Natal increased to R32.96. The A2/3 carcass price is trading at R52.42, while the C-grade price rose to R43.55 per kilogram.
We are now in the middle of October, and the calf price has started to rise as demand improves, and the price may continue to increase until mid-November. However, after that, the price is expected to decline again. It doesn’t seem like slaughter prices want to move much, but they could possibly start to pick up again around mid-November as we prepare for the December holidays.
In the sheep industry, the national average feeder lamb price has risen to R41.25 per kilogram, with the average slaughter lamb price also higher at R40.27. Looking only at direct sales, the feeder lamb price stands at R40.39, while slaughter lambs are at R39.60. The average feeder lamb price in the Free State is R41.97, while the price in the North West has risen to R42.33 per kilogram. We still expect lamb prices to rise further and possibly peak by the beginning of December. However, from early December to the end of February next year, the price may decline again.
The A2/3 price remains steady and holds a relatively high level of R90.71, while the C2/3 price has risen to R63.93 per kilogram. We still believe that A and C grade prices will remain on an upward trend until mid-December and will likely peak around Christmas. Lower interest rates could positively influence demand for sheep.
In the wool market, we also had good news with RWS prices up 1.6% to a clean price of R164.37 per kg, while the non-RWS price is trading at R162.11 per kilogram. In Australia, average wool prices have risen by more than 3% to AUS $11.39 per kilogram, with strong and sometimes aggressive competition among buyers. The stronger demand has mainly come from China due to expectations of better economic activity. At the same time, supply has decreased, leading to good price increases, and hopefully our local market will also improve this week.
Discover FieldNET Pivot Watch: your cost-effective monitoring solution that fits any pivot point. Monitor any pivot point, anytime, anywhere. Contact your nearest Zimmatic dealer today for a quote!
Chicken prices are rising again, with the frozen ex-abattoir price at R34.42, fresh prices increasing to R34.34, while the IQF price rises to R31.48. As noted last week, these prices are expected to receive some support due to potentially better demand until the first week of November. After that, unfortunately, it seems that these prices may start to decline again.
The latest baconer price also rose last week to R32.78, with the porker price increasing to R33.43, while the latest sausage price dropped to R25.27 per kilogram. I feel that these prices may show a slight increase until the first week of November and should maintain that level until just before Christmas. However, prices are expected to decline sharply in the new year.
Looking at the weekly auction prices for goats, we saw that the latest large goat price dropped to R38.87, small goat prices fell to R72.26, while goat ewe prices decreased to R57.38 last week.
Moving to the feed market, we have seen that most prices have risen. The latest average Grade 1 lucerne price for the producer increased to R3200 per ton, Supreme at R3900, and Grade 2 is still approaching R2700 per ton. The higher lucerne prices are due to increased exports and the Supremes being in high demand, especially in the Western Cape. The drier conditions have also stimulated better demand from feed factories.
We have also seen a considerable shortage of chop in the market, with average chop prices rising to R4350 per ton last week, moving closer to the white maize price. The shortage is due to fewer white maize being milled, and mills are struggling significantly at the moment. White maize is currently hardly selling at all, but the better chop price does bring some relief to the mills that are having a tough time on the milling side. This trend is expected to worsen as the year progresses, and white maize remains relatively scarce.