The latest weaner calf price has further declined over the past week, with the average price now at R31.74 per kilogram. At this time last year, the price was 7% higher, trading at R34.21. The price in Limpopo has dropped to R33, while the average price in the Eastern Cape has dropped to R31.25. The A2/3 carcass price also dropped to R55.02, while the C-grade price fell to R43.33 per kilogram. Hand sales of weaner calves between 200 and 250kg are currently at R31.82 per kilogram, while the national average price at weekly auctions was R29.68 last week. Calves under 200kg traded at R31.01, while heavier calves above 250kg averaged R28.02. I think we might see a small further decline in calf prices, but possibly better prices again around mid-October. Slaughter prices may continue to trend downwards for now until the Christmas market begins to support meat demand.
In the sheep industry, the feeder lamb price also declined last week to R39.64 per kilogram, which is very much in line with what we received last year. The average price in the Northern and Eastern Free State traded at R40.68, while the Central and Southern Free State price fell to R39.00 per kilogram. The national average feeder lamb price at weekly auctions was R40.72 last week, while slaughter lambs traded at R38.58. The price may drop a bit more at the start of September but should stabilize and rise again as we approach the end of the year. The A2/3 price dropped to R89.50, while the C2/3 price dropped to R64.99 per kilogram. We may see slightly lower prices over the next few weeks, but we should move above the R90 mark again this year.
Then, we also had the first wool auctions of the new season last week. Unfortunately, the stronger Rand and lower international wool prices put a lot of pressure on prices. At the OVK wool auction, the Cape Wools Merino indicator dropped by 5.6% for all Merino wool to a clean price of R162.63/kg, with certified wool prices 5.8% lower at R163.94/kg. In Australia, prices were down as the US Dollar traded weaker and demand remained relatively limited.
Ex-abattoir poultry prices rose sharply last week, with the frozen price at R35.59, fresh prices rising to R33.97, and the IQF price increasing to R30.10. The producer price remains at R18.80. It seems that the frozen price might stabilize around R36.50 by early November, while fresh prices might just reach the R36 mark. The IQF price could also rise further, possibly moving past R32 over the next 2 months.
The latest baconer price also rose last week to R31.67, the porker price increased to R32.17, while the latest sausage pig price traded lower at R24.54 per kilogram. There is certainly still upward potential for prices until mid-December, but it unfortunately doesn’t look like we’ll see last year’s price levels this year.
The latest large goat price increased to R44.27, small goat prices stand at R57.07, while goat ewe prices dropped to R45.21 last week. Goat prices are expected to remain relatively high for the coming months, but we may see lower prices in spring.
Looking at feed prices, the latest average Grade 1 lucerne price remained unchanged at R3700 per ton due to relatively low movement of the product at the moment. Hay bale prices also remained steady with oat hay at R2500 per ton and peanut hay at R2400 per ton.
The chop market dropped this week as mills began milling more with the export market becoming more active. The average price for the week is R3875 per ton with fears that the market will decline further as supply increases.
