In the oilseed complex, the expected sunflower output jumped 4.6% month-on-month to 731,210 tonnes while the estimate for soybean advanced 2.1% month-on-month to 1.27 million which is 8.4% higher than the previous season and the third on record. Groundnuts also saw output increasing by 3.1% month-on-month to 56,060 tonnes, up by a whopping 189% year-on-year.
The season so far has progressed well, and all indications are that we are going to finish the year on a positive note. This is not only good development from a GDP perspective, this bullish supply outlook will help tame food inflation despite upward pressure from the weaker rand.
Finally, a sustained Rand weakness will continue to boost export revenues for exportable products such as maize and fruits.
