ABSA_ Agri Trends – Grains and Oilseed: 25 August 2023

Agri Trends –Grains and Oilseed           


Weather conditions proving challenging for grains and oilseeds.

Maize: CBOT corn experienced a 1.1% increase for the week ending 18th August, followed by a month-on-month decline of 9.0% and a more pronounced decline of 28.3% year-on-year. This is due to continued dry and warm weather conditions that persisted throughout August, expected to persevere into early September. Prices were also supported by traders, by incorporated a premium into the anticipated near month contract price. Domestically, yellow maize prices followed the global increasing price trend, supported by a 1.1% appreciation of the Rand. Local prices continue to trade below both US and Argentinian export parities, pressured by lowered global prices.

Wheat: CBOT wheat prices fell by 2.2% and 0.5% for CBOT SRW and HRW respectively. Prices also softened due to Ukraine’s recent declaration to consider establishing a “humanitarian corridor” along its western coastal region adjacent to Romania and Bulgaria. In Canada and the EU, the potential strain on the high-protein spring wheat harvest will raise concerns for production outlooks. For the week ending August 18th, SAFEX wheat prices rose by 0.2% despite an appreciation of the Rand.

Oilseeds: Global soybean prices decreased by 2.7% decrease week-on-week, the monthly price declined by 9.2% and decreased by 15.1% year-on-year. USA soybean prices decreased at the back unchanged CIF values, while export premiums experienced a decline. This can be attributed to the subdued demand for U.S. soybean supplies, as the export market continues to be dominated by abundant Brazilian crop. Local prices followed an increasing price trend, despite gains on the Rand.

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