Trends in the producer price of weaners and beef

During the week of 11 December, the average auction price was R39,20/kg for weaners (200 – 250kg) and R36,85/kg after auction commission, according to AMT.

The price was 0,3% higher compared to the previous week. The increase was caused among others by a higher demand, caused by especially individual producers due to better grazing conditions on farms.

Compared to a month ago, the price increased in total by 5,3% and was 51,9% higher year-on-year.

Compared to the long-term trend, the chance is 55% for a lower average price in December compared to November, which is based on prices over the past 20 years and 63,0% for a higher price in January 2021 compared to December.

The average producer price of Class A2/A3 beef was in total 0,9%higher in the week of 4 December 2020 compared to the previous week. The increase in the beef price not withstanding a higher supply can among others be contributed to a higher demand caused by the festive season. The price was 0,9% higher against the previous month and 12,7% higher year-on-year.

For the immediate future, the average price of the A2/A3’s is estimated to move upward. Based on long term trends, the chance is however 75% for a higher average price in December compared to November which is based on prices over the past 20 years and 55,6% for a lower price in January 2021 compared to December.

In the week of 4 December 2020, the average price of the C2/C3’s was in total 0,4% lower against the previous week, 2,4% higher against a month ago and 16,3% higher year-on-year. The lower price can among others also be contributed to a lower demand.

For the immediate future, the average price of the C2/C3’s is expected to move more sideward.