Good news is that the weaner calf price has increased by more than 1% in the past week, with the national average price now at R31.34 per kilogram. At this time last year, the price was trading about 7% higher at R33.71. Regional prices are rising, with the price in Limpopo now at R32, while the average price in the Western Cape has dropped to R30.50. The A2/3 carcass price has decreased to R53.88, while the C-grade price has risen to R42.94 per kilogram.
At last week’s auctions, we saw that the national average price for calves between 200 and 250 kg dropped slightly to R29.18, with calves under 200 kg higher at R30.32, while heavier calves above 250 kg also increased to R27.91 last week. However, off-the-hand sales have decreased slightly, with the average price of calves between 200 and 250 kg at R30.83 per kilogram. It still seems that the weaner calf price may rise until mid-October, as feedlot demand is expected to remain high until then. Slaughter prices are expected to decrease slightly now but may pick up again from mid-November as we prepare for the December holidays.
In the sheep industry, the feeder lamb price has remained steady at R39.60 per kilogram, which is still 1.8% higher than last year’s price. The average price in the Eastern Cape is trading at R39.50, while the price in the Western Free State has increased to R39.38 per kilogram. The national average feeder lamb price at last week’s auctions has dropped to R38.12, while slaughter lambs have fallen to R37.55. Off-the-hand sales of feeder lambs averaged at R38.83, while slaughter lambs traded at R39.00. We still expect lamb prices to enter an upward trend and possibly reach a peak again by early December. From early December to the end of February next year, the price may drop again.
The A2/3 price remains above R90, trading at R90.67, while the C2/3 price has dropped to R62.94 per kilogram. We still think that the A-grade price will remain in an upward trend until mid-December, while the C-grade price could start improving from mid-October and then also peak around Christmas.
The average Cape Wools Merino indicator has decreased by 1.3% to a clean price of R159.35/kg, with certified prices 1% lower at R161.01/kg. In Australia, prices remained steady at AUS$10.99 per kilogram. Demand at the auctions has improved, and if it weren’t for the weaker US Dollar, prices would have increased by approximately 1.5%. Chinese buyers remain very price-sensitive, which may counteract upward momentum. Our stronger Rand is also likely to continue putting pressure on local prices this week.
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Poultry prices continued to decline this past week, with the frozen ex-abattoir price lower at R35.25, fresh prices falling to R34.02, and the IQF price dropping to R31.16. The stronger Rand is also now pushing poultry prices down, but these prices should still receive some support until early November, provided the Rand stabilizes, of course.
The latest baconer price also increased last week to R32.35, the porker price rose to R32.75, while the latest sausage pig price climbed to R24.91 per kilogram. Pork prices could continue rising until mid-October and are expected to maintain that level until the end of the year. Unfortunately, the stronger Rand is also limiting upward momentum at the moment.
Looking at last week’s auction prices for goats, we saw that the latest large goat price rose to R46.41, small goat prices decreased to R72.77, while doe prices dropped to R48.95 last week.
As for feed prices, the latest average Grade 1 lucerne price remained unchanged at R3700 per ton, while the average chop price increased to R4075 per ton. There is currently significant demand-side pressure for white maize meal, which is causing fewer products to move and, therefore, less milling. Chop, a byproduct of the milling process, is also produced in lower quantities, which has pushed prices up. The fact that yellow maize is also trading closer to R4200 is forcing buyers to consider chop as well.