Last week, the national average weaned calf price for animals between 200 and 250 kilograms increased further and is now trading at R34.46 per kilogram, with “off-the-hand” sales also rising to R35.13 per kilogram. Lighter calves between 160 and 200 kilograms, however, declined slightly to R34.09, while heavier calves between 250 and 300 kilograms increased to R33.13 last week. Bulk calves, averaging 228kg, are at R33.64, while crossbred calves weighing an average of 225kg are now at R31.93. The average price in the Free State maintains good levels and remains at R34.98, while the price in the Eastern Cape is also rising to R34.50 last week. Slaughter prices continue to rise, with the A2/3 carcass price now at R56.81, while the C-grade price drops to R46.47 per kilogram.
It’s raining really well across most production areas at the moment, and many farmers are already seeing an opportunity to carry more animals through the winter, which could mean we maintain better prices this year when compared to last year’s levels. The demand for feeders could also give prices a boost. Traditionally, we see lower prices for calves during May and June each year, but this year may look a little different, especially if there are fewer imports as Botswana and Namibia have also received good rainfall.
The average feeder lamb price rose last week to R41.06, with the slaughter lamb price sharply up to R44.22 per kilogram. Direct feeder lamb prices also rose and are trading at R40.59, while direct slaughter lamb prices increased to R43.25 per kilogram last week. The average feeder lamb price in the Free State maintains current levels and is trading at R43.16, with the price in the Western Cape at R41.50 per kilogram. The average lamb price is now about 11% higher than last year’s price levels but still about R1 lower than what we saw in 2022. Conditions are much different now, but it’s not impossible that we might follow that same trend again. In 2022, lamb prices peaked at R54 in June.
Slaughter prices continue to rise with the A2/3 price at R101.50 per kilogram, while the C2/3 price drops to R64.36 per kilogram, with slaughter numbers staying low. A-grade prices remain high due to low slaughter numbers in the north, and forecast models indicate that we may still see support in market prices until early July.
Wool prices continue to rise, with the RWS clean wool price at R187 per kilogram, while non-RWS wool prices also rise to R184.07 per kilogram. Wool prices in Australia increased by 0.6%, reaching an average price of AUD $12.50 per kilogram. This was despite the US Dollar weakening again. Demand from Chinese buyers was the main reason prices increased, and we may see prices remain strong this week.
The chicken market has been moving sideways over the past week, with the frozen ex-abattoir price slightly higher at R33.26, fresh prices at R36.93, and the IQF price remaining at R33.29 per kilogram. My feeling is that we could remain close to these price levels until the end of March, then see a bit of an increase in April and May. We’ve also started tracking egg prices, and we saw the average price drop last week to R24.38 per dozen.
Pork prices are mostly maintaining current levels, with the latest bacon price at R32.35, the meat pig price at R32.77, and the latest sausage pig price decreasing by 3% to R25.10 per kilogram. Traditionally, prices should drop slightly now due to lower demand, but pressure on supply may counteract this, and we may see sideways prices until the end of July.
The latest large goat price drops to R32.78, small goat prices drop to R48.25, medium goat prices rise to R48.53, while goat wool prices drop to R41.33 per kilogram. The expectation is that these prices will remain volatile week to week but will trend upward overall.
Lucerne prices remain sideways, with the latest Grade 1 lucerne price at R3200 per ton, prime lucerne at R3800, and Grade 2 lucerne at R2700 per ton. The import parity price for soybean meal trades lower at R11053, while yellow maize and sunflower prices also drop.
The demand for chop is picking up due to the increased demand from feedlots as we move into the weaning period. However, buyers remain very sensitive to any price increases, and enough chop is still available. As a result, prices remain steady at R3450 per ton. Fewer grinding days, which could reduce supply, may limit availability, but we see that prices are already trading near 80% of the May price. If that price drops a little, we may see pressure on chop prices as well.
