The national average weaner calf price traded last week at R29.69 per kilogram for calves between 200 and 250kg. The price is much lower than last week’s, but we have also considered auction prices throughout the week to get a true average price from all sales. Direct sales, which we usually report on, were R30.99 per kg last week for this weight class. Lighter calves under 200kg rose to R30.21, while heavier calves over 250kg traded at R28.09. The average price in the Free State traded at R29.73, while prices were significantly lower in the Western Cape, trading at R26.48. The A2/3 carcass price traded at R52.36, while the c-grade price traded at R43.17 per kilogram.
The calf price remains under significant pressure, but we may see some temporary relief in prices from mid-October to mid-November, while slaughter prices could drop now and possibly start picking up again from mid-November as we prepare for the December holidays.
In the sheep industry, the national average feeder lamb price, which includes weekly auctions and direct sales, rose to R40.58 per kilogram, with the average slaughter lamb price also higher at R40.32. Looking only at direct sales, the feeder lamb price stands at R40.30, with slaughter lambs at R40. The average feeder lamb price in the Free State traded at R41.08, while the Western Cape price rose to R39.98 per kilogram. We still expect lamb prices to rise further and possibly reach a peak by early December. From early December to the end of February next year, however, the price may drop again. The A2/3 price dropped slightly and traded at R90.68, while the C2/3 price rose to R63.16 per kilogram. We still believe that A and C grade prices will remain on an upward trend until mid-December, reaching a peak around Christmas. Lower interest rates may especially positively influence the demand for sheep.
In the wool market, we also had good news with RWS prices 0.5% higher at a clean price of R161.85 per kg, while non-RWS prices traded at R159.59 per kilogram. In Australia, average wool prices rose by more than 1.5% to AUS $11.04 per kilogram due to Chinese buyers being more active at auctions, following various stimulus packages implemented by the Chinese government, which had a direct impact on demand.
Then, the third mohair auction also took place last week, with the latest average price 2% lower at R332.69 per kilogram. The price drop was mainly due to the stronger Rand and not all auction houses being present at the auction.
Poultry prices remain under significant pressure, with the frozen ex-abattoir price downwards at R33.29, while fresh prices remain at R33.66, and the IQF price stays at R30.98. The stronger Rand is also now pushing poultry chicken prices down, but these prices may still get some support due to possibly better demand.
The latest baconer price also rose last week to R32.77, with porker prices rising to R33.30, while the latest sausage pig price increased to R25.45 per kilogram. Pork prices could rise further until mid-October and are expected to maintain those levels until the end of the year.
Looking at the weekly auction prices for goats, we saw that the latest large goat price rose to R44.61, small goat prices rose to R75.15, while nanny goat prices dropped to R54.53 last week.
In the feed market, we see that the latest average Grade 1 lucerne price for producers has dropped and is now trading at R3100 per ton, Supreme at R3850, and Grade 2 closer to R2700 per ton. The average chop price also rose due to white and yellow maize prices increasing, with the latest prices trading at R4250 per ton.