The national average weaner calf price for calves between 200 and 250 kilograms has picked up slightly, now trading at R34.22 per kilogram, with “Out-of-hand” sales slightly down to R34.98 per kg. I wonder if the small increase is possibly due to more tax purchases. Lighter calves between 160 and 200 kilograms rise to R34.02, while heavier calves between 250 and 300 kilograms increase to R33.25 last week. Bulk calves, averaging 221kg, stand at R32.77, with different calves averaging 219kg now at R32.34. Prices have also increased in different regions, with the average price in the Western Cape at R33, while Limpopo’s price rises to R34.26 last week.
The expectation is that the weaner calf price could drop this week and then stabilize between R32 and R33 until the beginning of May, but calf prices are likely to come under further pressure in May, when we usually see higher supply. Currently, it looks like the average price should stay around the R31 mark when we expect a low point by the end of June. Unfortunately, slaughter prices are also down, with the A2/3 carcass price now at R55.36, while the C-grade price drops to R47.03 per kilogram. We still expect slaughter prices to stay at a lower level until the end of February, but rise again from March to May. The average cow price last week was R11,320 per head or R21.48 per kg, with pregnant cows at R16,964.
In the sheep industry, the average feeder lamb price has decreased by 4.5% to R39.28, with the slaughter lamb price higher at R41.58 per kilogram. Direct feeder lamb prices are also down, trading at R39.86, while direct slaughter lamb prices rise to R40.80 per kilogram. The average feeder lamb price in Limpopo falls to R40.38, with the price in the Western Cape at R41.11 per kilogram. We still expect lamb prices to trend upward until the end of June or mid-July, when they usually peak. However, last week’s price drop has made it more difficult for us to reach R50 this year, but we still hope lamb prices can improve, especially since slaughter prices are maintaining good levels right now.
Speaking of slaughter prices, the A2/3 price has risen further to R99.03, while the C2/3 price sharply drops to R65.09 per kilogram. Slaughter lambs are currently very scarce in most sheep areas, which are suffering under dry conditions, and lambs that need to be fed. In the Western Cape, slaughter prices are already between R107 and R112 per kilogram. Feedlots are relatively full, but the animals are not yet slaughter-ready. When those animals do come to market, we could see lower slaughter prices in March, but we estimate prices could rise again as we move into April, May, and June. The current forecast indicates that we could be close to R115 by the end of June, but the drop in March could affect those levels. So, keep an eye on the videos as we progress.
The RWS clean wool price increased last week to R176.68 per kg, while non-RWS wool prices also rose to R172.53 per kilogram. However, wool prices in Australia are down by about 1%, averaging AUS $11.84 per kilogram. February is traditionally a month when much fine wool hits the markets. However, there has been a significantly lower demand from Italy, the biggest buyer of fine wool, and there have also been quality issues. The expectation is that prices could drop a little this week.
The frozen ex-abattoir price moved sideways last week to R33.39, fresh prices dropped to R35.35, while the IQF price remained steady at R33.42 per kilogram. The expectation is still that we could reach a low point by the end of March and then see an increase in May and June.
Pig prices continue to drop as expected, with the latest bacon pig price 0.5% lower at R32.09, the pork price down almost 1% to R32.50, while the latest sausage pig price sharply rises to R25.62 per kilogram. Sausage pig prices have increased due to producers holding back a little at the moment and better demand, as there is less C-grade beef available in the markets. We are seeing very good demand in the market, which limits the downward movement that usually accompanies seasonality. The expectation is that prices might still fall a little, but we could maintain better prices than last year due to lower supply. We may also see better prices after the winter.
Goat prices had mixed results last week, with the latest large goat price up to R46.51, small goat prices dropping to R42.25, medium goat prices falling to R46.27, while goat kid prices drop further to R34.46 per kilogram. Goat prices are expected to start rising just before winter, peaking at the end of winter or the beginning of spring, and usually fall towards Christmas.
There has been no movement in lucerne prices, with the latest average Grade 1 lucerne price at R3100 per ton, prime lucerne at R3750, while Grade 2 lucerne remains at R2500. The import parity price for soymeal is higher at R11,393, with domestic prices between R7500 and R7700 currently. Yellow maize prices are also down to R4875 per ton on Monday.
However, chop prices remain under significant pressure, having dropped to as low as R3000 per ton last week. We’ve seen that the moment load shedding was announced, it caused chop prices to rise again, and they’re currently around R3100 per ton. The question is whether load shedding will mean that we will mill fewer maize, and there will be less chop available. This could mean higher chop prices in the short term, but also lower demand for maize. It will be interesting to see how this plays out.
Leave us a comment on our Facebook and YouTube channels, we’d love to hear from you. You’re also welcome to join one of our WhatsApp groups where we share all the information, such as reports and special offers, with everyone. I’ll also place all the links to our social media platforms in the description below.
