The 100day MA of yellow maize (YM) is R3280, spot currently R3170 July futures R2530, Soya 100 day MA R6870, peaking at R8000, current spot R6600 with July futures at R6030. Chicken and Pig feed comprises from 70 to 90% of these two commodities, add to that, that 60% and more is the cost of feed for producing chicken and pork, input costs are going to be coming down by a significant margin. They also the largest produces of animal feed that is sold to farmers etc., and you can rest assured that the full saving is not going to be passed on. I'm betting on a price of 150-160 in 9 months and if there are favourable farming conditions then 170 plus is my guess, wasn't too long ago this share was over 200. I have been accumulating both long term and CFD below 120 and seriously thinking of adding more. RCL have diversified a lot from what used to be purely a chicken producer (Rainbow), so the above will have less effect on them. SOV have shareholders at war, maybe QFH could also benefit. White maize 100day MA R4200, spot R3600, July futures R2570 a big plus for PFG, the biggest producers OF maize meal in SA, owning the leading brands. ...........Time will tell.
This is a movie I've seen often. The Rand has and always will be subject to wild swings which are beyond our control, no one can predict where the Rand will be in 2 hours time after the FM has given this speech. I box in the same ring as Meadow, Epol, De Heus and a Tongaat subsidiary, albeit in the light flyweight division, so I'm pretty confident with my prediction.