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Grain Economy
INPUT PRICES
T
he reporting period was characterised by record input prices, but also by high interna-
tional grain prices. The side effects of the COVID pandemic definitely still had an impact
on supply and value chains. The situation was aggravated by the Russia/Ukraine war.
Grain SA’s leadership held discussions about the unsustainability of the record input
prices not only with umbrella organisations, but also with individual companies. Energy prices
(crude-oil and natural-gas prices) rose sharply and caused fuel and fertiliser prices to reach new
records on international and local markets.
JSE MATTERS
This season, the JSE appointed a technical committee from the advisory committee. The technical
committee consists of absolute experts from the commodity market. Among other things, the tech-
nical committee focused on the outloading capacity of silos and the alternative location differential.
The adjustment of rules and regulations on physical delivery and increased inspections of JSE silo
certificates were some of the main actions prioritised by the JSE.
The process of accomplishing changes in rules and regulations regarding physical delivery contracts
at the JSE was completed and communicated to the market via a market note. One of Grain SA’s
proposals, that independent inspections of JSE silo certificates should be increased and that the
results should be communicated regularly, is now being implemented by the JSE via regular market
communication. Since the JSE investigation and the increased number of inspections, all the inspec-
tions have been clean.
APPLIED ECONOMY AND
MEMBER SERVICES
Strategic focus areas
Sustainable profitable
production
Promotion of transparent
market information
Monitoring of input industry
(price, quality and availability)
Expansion and development
of markets
Influencing of grain policy
environment
Highlights
Record-level grain prices and input costs.
Pressure of rising input costs on margins.
Export protocol for soybean exports signed and implemented.
Fertiliser monitoring project – results improving over time.
Approval of new soybean technology and progress as a
result of breeding and technology levy.
Negotiations with respect to new diesel rebate system, as
well as handling of interpretations of legislation – specifically
with reference to keeping logbooks.
Progress with the alternative location differential.
Grading of maize.
Transparency of grain market – statutory reporting of grades
(producer deliveries and stocks) and import and export inten-
tions of wheat.
Barley contracting process.
Grain SA also assisted members with disputes.
Sustained communication regarding fundamental
market information.
BY
RECORD INPUT PRICES
Grain economy
OVERSHADOWED