DAILY MARKET REPORT 30 NOVEMBER 2018

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1 DAILY MARKET REPORT 30 NOVEMBER 2018 Unigrain (Pty) Ltd Tel. No. : Fax. No. : Economic Indicators Quote at 12h00 previous day Current quote Change % Change Rand/Dollar Euro/Dollar Gold Platinum Brent Crude JSE Top Dow Jones Indus Avg The changes in the table above is from previous Safex close (12h00) The rand posted some good gains yesterday on a slightly weaker dollar with the rand trading as low as R13.58/$ and the rand is quoted at R13.64/$ currently. South African equities ended slightly lower yesterday with the JSE Top40 ending 0.21% lower. Key data for our market will be the South African trade balance. In the US the dollar is weaker and trading at to the euro and US equities ended lower with the Dow ending 0.11% lower in the session yesterday and this morning the Dow futures are mostly flat. Expectations for less rates hikes in the US weighed on the dollar the past 2 sessions. Markets look towards the scheduled trade meeting between the US and China. Commodity prices are mixed with precious metals under some pressure with gold and platinum prices 0.13% and 1.07% lower than the levels seen yesterday while crude oil prices are 2.93% higher this morning. US Dollar/South African Rand Key data releases: European Union consumer inflation South African trade balance

2 International Market Quote at 12h00 previous day Current quote Change % Change CME Dec maize CME Mar maize CME Dec wheat KCBT Dec wheat KCBT Mar wheat Matif Dec wheat (Euro/ton) CME Jan soybeans Dec CME maize R/ton Mar CME maize R/ton Dec CME wheat R/ton Dec KCBT wheat R/ton Mar KCBT wheat R/ton Jan CME soybeans R/ton The changes in the table above is from Safex close (12h00) Corn US maize prices ended mostly flat in the daytime session yesterday with the market being supported by the solid US export sales data. This morning the electronic maize prices are mixed. The weekly US export sales figures of maize released yesterday was reported at 1.3 million tons which was well above the market expectation seen ranging between and tons. Some position squaring is also seen ahead of the US/China trade talks scheduled for the G20 meeting this weekend. On the chart for March CME maize the market attempted some gains but ended well off the session highs. Support is seen at $3.68 and resistance around $3.78. Soybeans US soybean contracts ended slightly lower in the session yesterday with some position squaring that was seen ahead of the long awaited trade talks between the US and China. This morning the electronic prices are slightly higher and the market is higher than the levels seen at Safex close yesterday. The weekly US export sales figures of soybeans was reported at tons which was in line with the market expectations seen ranging between and tons. On the chart for March CME soybeans we see that the market remained in a narrow range yesterday. Resistance is seen in the $9.00-$9.10 area and support is seen at the moving averages seen around $8.80-$8.75/bushel. Wheat US wheat prices ended lower in the session yesterday with some technical selling that was seen while the sluggish export sales data also added some pressure. This morning the electronic wheat prices are trading unchanged/slightly higher. The weekly US export sales figures of wheat released yesterday was reported at tons which was in line with the market expectation seen ranging between and tons. The Russian government raised their 2018 wheat crop estimate to 70 million tons which is in line with the latest USDA wheat crop estimate. 2

3 US rainfall forecast for the week ahead US 6-10 Day temperature forecast South American raifnall forecast 3

4 South African Market - 29 November Maize South African maize prices opened the day higher with some more follow through buying that was seen after that. March white maize opened the day at R2525 and traded to a high of R2565 but the buying interest faded after that with a slightly better weather forecast towards the end of next week triggering some profit taking by market longs. The market sold off into the close trading to a low of R2487 ending the day close to the session low. The weekly South African maize exports for the week ending 23 Nov indicated that tons was exported including tons of white maize and tons of yellow maize. US maize prices are mostly flat this morning and the rand is slightly stronger trading around R13.64/$ this morning. Our market sold off in the session yesterday on some profit taking by market longs while the weather is looking slightly better towards the end of next week. However, still very little rainfall forecasted for the central and western growing areas. Wheat White Maize MTM Change High Low Dec Mar Jul Yellow Maize Dec Mar Jul Wheat Dec Mar Jul Sunflower Dec Mar Soybeans Dec Mar CME Corn Dec Mar South African wheat contracts opened the day lower with the stronger rand adding some pressure with some more selling that was seen after the opening. December wheat contracts started the day at R4364 and briefly traded to a high of R4382 with some selling that was seen after that. The market sold off sharply late in the day trading to a low of R4307 and ending the day close to the session lows. The weekly South African wheat imports for the past week indicated that tons of wheat was imported. The wheat that was imported originated from Russia. US wheat prices wheat prices are mostly lower this morning and the rand is slightly stronger. Local wheat prices were under pressure yesterday and ongoing rand strength could put some more pressure on local wheat in the session today. 4

5 Oilseeds South African soybean contracts once again gapped higher from the opening with some more buying that was seen after that. March soybean contracts started the day at R4842 and the market traded to an intraday low of R4800 but some buying was seen after that. March soybean contracts traded to an intraday high of R4860 ending the day very at the session highs. The strong close that was seen could be supportive for our market in the sessions ahead. South African sunflower seed contracts opened the day flat with some selling that was seen after the opening once again. March sunflower seed contracts started the day at R5104 and sold off after that trading to a low of R5070 with the market once again finding some support around the 100-day average (seen at R5074) and prices pulled off the lows after that ending the day at the session highs and around the opening levels. US soybean contracts are slightly higher this morning which is supporting parity prices despite the slightly stronger rand. We once again did see some very strong buying in local soybeans which could once again support the market. Weather conditions Cumulative rainfall forecast for week ahead Technical Graphs Safex Mar maize prices CME Mar corn prices 5

6 Daily MAWH9 Cndl, MAWH9, Trade Price 2018/11/29, , , , N/A, N/A SMA, MAWH9, Trade Price(Last), /11/29, SMA, MAWH9, Trade Price(Last), /11/29, SMA, MAWH9, Trade Price(Last), /11/29, SMA, MAWH9, Trade Price(Last), /11/29, /03/ /12/13 (JHB) Price ZAR T Auto RSI, MAWH9, Trade Price(Last), 14, Wilder Smoothing 2018/11/29, Value ZAR T March 2018 April 2018 May 2018 June 2018 July 2018 August 2018 September 2018 October 2018 November 2018 Dec 18 Auto 6

7 Daily CH9 Cndl, CH9, Trade Price, 2018/11/30, 373, / 4, / 4, / 4, 0, (0.00%), SMA, CH9, Trade Price(Last), 40, 2018/11/30, / 4+, SMA, CH9, Trade Price(Last), 9, 2018/11/30, / 8+, SMA, CH9, Trade Price(Last), 100, 2018/11/30, / /11/ /12/20 (CHG) Price USc Bsh / / / / RSI, CH9, Trade Price(Last), 14, Exponential, 2018/11/30, /8 Value USc Bsh November 2017 December 2017 January 2018 February 2018 March 2018 April 2018 May 2018 June 2018 July 2018 August 2018 September 2018 October 2018 November 2018 Dec 18 Auto 7