In the absence of major data releases, the weather was again a primary focus in the South African grain and oilseed market this week.
This time around, however, the prospects have turned positive for summer crop areas, with expectations of higher rainfall in the country within the next two weeks. This is good for both areas that are yet to plant as it will improve soil moisture ahead of the process, and also bode well for recently planted areas as it will support the germination process of the crop.
The eastern part of South Africa, which predominantly produce yellow maize and soybeans, have made good progress in terms of planting, whereas the western regions have not started in large areas due to drier conditions in the past few weeks.
In terms of winter crops, the past couple of weeks brought cool and drier weather conditions in the Western Cape, and that supported the harvest process.
Aside from the grain market, the SAFEX beef carcass market experienced a quiet week with prices unchanged from levels seen last week. In terms of the supply, the South African farmers slaughtered 189 108 head of cattle in September 2018, down by 11 percent year-on-year due to the herd rebuilding process after a reduction during the 2015-16 drought.
In the first nine months of this year, the South African farmers slaughtered roughly 1.8 million head of cattle, down by 7 percent from the corresponding period last year.
