3,630 3,310 2,030 1,710 1,070

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1 Agri-Weekly Yellow maize market (Graph 1) Graph 1: Yellow maize prices (R/ton) International: 4,27 The combination of above average crop 3,95 3,63 condition ratings and the resurgent US 3,31 dollar exerted downside pressure on the 2,99 2,67 market. 2,35 Weather conditions remained mostly 2,3 1,71 favourable over the week improving crop 1,39 1,7 ratings. In the recent USDA report, crop 75 ratings were revised higher by 1-percentage 28-Aug-15 1-Jan-16 6-May-16 9-Sep-16 point to 75% on the good to excellent Import parity Export parity Domestic conditions. The International Grains Council (IGC) was also bullish in its recent report. The council expects 216/17 global maize production reach 1.3m tons, 13m tons higher compared to the July estimate. Global carryover stocks are expected to balloon to 218m tons. The US is expected to account for almost half of the increase with a crop of 378.8m tons. Brazil has reportedly announced their intentions to allow their ethanol tax exemption to expire and the implications are reduced imports particularly from the US. Maize is the main feedstock for ethanol production in the US while Brazil uses sugarcane. Meanwhile, the US ethanol production was reported down 1, to 1,28, barrels per day but still the 2nd highest production level ever. Production levels are reportedly high during this time of the year. 16/17 Season IGC global projections (million tons) 13/14 14/15 15/16 July August Production Trade Consumption Carryover stocks Year/year change Major exporters Argentina, Brazil, Ukraine, US Source: IGC

2 FNB Agri-Weekly Page 2 Graph 1a: World maize production trends ( tons) 1, 1,, 8, 6, 4, Graph 1b: World maize- Ending Stocks vs Stocks/Usage ratio 25, Ending Stocks Stocks/Usage ratio 15, 1, 5, 35% 3% 25% 2% 15% 1% 5% % Source: USDA, PSD Domestic: Weekly YMAZ market posted good gains mainly supported by the slightly weaker rand late in the week. Producer deliveries have slowed with the recent pace slightly behind last year. Producer deliveries for total maize during the week ended 26 th August came in at 137,234 tons, bringing cumulative year to date deliveries to 5.74m tons. The yellow maize shares were 2% and 56% for the week and for the season to date respectively. The total maize delivered so far is shy of 79% of the projected production for the 215/16 season. The Crop Estimates Committee (CEC) recently raised its estimate of the maize crop by.5% to 7.3m tons with yellow maize coming in marginally up at 4.2m tons. Imports came in sharply higher with the weekly data for the week ended 26 th August 216 showing twice the volume imported a week earlier. Weekly yellow maize imports came in at 95,352 tons, with the year to date figure reaching 457,855 tons. Major suppliers are the South Americans - Argentina and Brazil with a share of 57% and 43% respectively. However on a season date basis, Argentina s share is 91% while for Brazil is only 9%. The average weekly YMAZ prices were up 2.6% w/w and 16% higher y/y at R3,166/t. Prices have so far dropped by R223/t from the 216 peak of R4,21/t Graph 1c: Weekly YMAZ price change (R/ton) Last 5 months Graph 1d: JSE YMAZ Futures, Jul-17 (R/t) Source: JSE, Own Calculations SAFEX (Rand/ ton) CME (US$/t) 26 August 216 WMAZ % w/w YMAZ % w/w CBOT Corn % w/w US CORN % w/w Weekly Avg R 4, % R 3, % R 1, % % Sep-216 R 4, % - - R 1,83 2.6% % Dec-216 R 4, % R 3, % R 1, % % Mar-217 R 3,857-4.% R 3, % R 1, % % May-217 R 2, % R 2, % R 2,38 2.6% % Jul-217 R 2, % R 2, % R 2,19 2.9% % Source: JSE, CME

3 FNB Agri-Weekly Page 3 OUTLOOK The uncertainty regarding the resolution of the Gordhan/ Hawks impasse continues to have a negative impact on the economy with the rand taking a pounding recently. Further rand weakness will place upward pressure on grain prices. While good for producers heading into the planting period, it is inflationary and therefore we are unlikely to see a respite in food prices should the rand weaken sharply in the short to medium term. 4, Graph 1e: Monthly Yellow Maize Export Trends Marketing Seasons, (tons) 8, Graph 1f: Total SA Maize Export Trends Marketing Seasons, (tons) 3, 6, 2, 4, 1, 2, 215/16 216/17 215/16 216/17 5, 4, 3, Graph 1g: Monthly Yellow Maize Import Trends (tons) Marketing Season 5, 4, 3, Graph 1h: Total Monthly SA Maize Imports (tons) Marketing Season 1, Source: SAGIS; 215/16 216/17 Calculated Yellow Maize Options prices (R/ton) RMB commodity desk (Tel: ) Dec-16 Mar-17 May-17 Ask Put Call Ask Put Call Ask Put Call 3, , , , , , , , , , YM 216/17 WM 216/17 YM 215/16 WM 215/16 White maize market trends (Graph 2) International: US white maize prices lost ground and reversed recent gains on US$ strength and relatively good crop conditions. Weekly white maize prices closed at US$138.4 per ton, down 3.4% w/w and 4.4% y/y. Domestic: White maize prices rallied on strong export sales and rand weakness. White maize prices averaged R4,243 per ton for the week, up 1.4% w/w and 4% higher y/y. (R/ton) 5,48 5, 4,52 4,4 3,56 3,8 2,6 2,12 1,64 1,16 Graph 2: White maize prices Aug-15 1-Jan-16 6-M ay-16 9-Sep-16 Import parit y Export parit y Domest ic * last two data points are preliminary

4 FNB Agri-Weekly Page 4 Prices have so far shed R919/t from the 216 peak of R5,162/t. Deliveries for the week ended 26 th August were pegged at 19,394 tons, bringing the cumulative season to date delivery at 2.51m tons. Total maize delivered for the week was 21,93 tons with white maize share being 8%. However, white maize accounts for only 44% of the total deliveries for the season to date. On the import front, white maize imports came in at 44,976 tons all from Mexico. Mexico has so far supplied 29,625 tons of white maize to South Africa, which is 91% of the total imports of this variety. Total maize imports for the 216/17 season have now reached 688,151 tons. OUTLOOK The uncertainty regarding the resolution of the Gordhan/ Hawks impasse continues to have a negative impact on the economy with the rand taking a pounding recently. Further rand weakness will place upward pressure on grain prices. While good for producers heading into the planting period, it is inflationary and therefore we are unlikely to see a respite in food prices should the rand weaken sharply in the short to medium term. Graph 2a: JSE WMAZ Futures, Jul-17 (R/t) Graph 2b: Weekly price change (R/ton) - JSE WMAZ Calculated White Maize Options prices (R/ton) RMB commodity desk (Tel: ) Dec-16 Mar-17 May-17 4, , , , , , , , , , Graph 2c: Monthly White Maize Export Trends (tons) Marketing Seasons 8, Graph 2d: Total SA Maize Export Trends Marketing Seasons, (tons) 5, 4, 6, 3, 2, 4, 1, 2, 216/17 215/16 215/16 216/17

5 FNB Agri-Weekly Page 5 Graph 2e: Monthly White Maize Import Trends (tons) Marketing Season Graph 2f: Total Monthly SA Maize Imports (tons) Marketing Season 14, 12, 1, 8, 45, 4, 35, 3, 25, 6, 4, 15, 2, 1, 5, 215/16 216/17 Cumulative YM 216/17 WM 216/17 YM 215/16 WM 215/16 Source: SAGIS; Wheat market trends (Graph 3) Graph 3: Wheat price trends International: (R/ton) The stronger US dollar and the generally 5,34 large global supplies exerted pressure on 4,9 4,46 the market. 4,2 A number of crop analyst agencies 3,58 3,14 released their estimates during the week. 2,7 The IGC raised its world wheat production 2,26 1,82 to an all-time high of 743m ton with 1,38 carryover stocks reaching 229 tons In Russia, UkrAgroConsult indicated that 28-Aug-15 1-Jan-16 6-M ay-16 9-Sep-16 the wheat crop would be almost 13% larger Import parit y Export parit y Domest ic than last year at 73m tons and sees Ukraine's crop increasing by 5% to 26m tons. The Canadian wheat crop is projected up 1.5% y/y at 3.5m tons according to Statscan. In the EU, crop conditions have shown no improvement as harvest progresses with European Crop Monitoring service lowering its EU yields by 4% to 5.9t/ha. The council lowered French yields to 6.56t/ha, 11% poorer than the 5-year average. Plantings in Argentina are reportedly up 19% y/y at 4.3m hectares. Graph 3a: World wheat production trends ( tons) Graph 3b: World wheat: Ending Stocks vs Stocks/Usage ratio 8, 7, 6, 5, 4, 3, 1, 3, 25, 15, 1, 5, Ending Stocks Stocks/Usage ratio 4% 35% 3% 25% 2% 15% 1% 5% % Source: USDA, PSD

6 15-Jan Jan Feb Feb Mar Mar-16 8-Apr Apr-16 6-May- 2-May- 3-Jun Jun-16 1-Jul Jul Jul Aug Aug-16 FNB Agri-Weekly Page 6 Domestic: The Rand provided most of the support on the domestic market as overall crop conditions remain fairly good, particularly in the Western Cape. Wheat prices averaged R4,3 per ton, up 3% w/w and 5% higher y/y. Import parity prices adjusted higher due to recent increase in the wheat tariff to R1,591.4/ ton that was published on August 22. In the deliveries report, SAGIS pegged weekly deliveries to commercial silos at 1,123 tons slightly lower on last week however typical of late season deliveries. Total deliveries for the 215/16 season have now reached 1.4m tons. Weekly wheat imports came in at 34,76 tons, all from Russia. The cumulative year to date imports were pegged at 1.85m tons. Exports were reported at 615 tons, almost half the volumes registered in the week earlier. Only 5,427 tons were exported for the season to date. OUTLOOK The renewed rand weakness will underpin price direction in the short term. Better production conditions and better yields will continue to limit further upside for prices. Graph 3c: Weekly JSE Wheat price change (R/ton) Graph 3d: JSE WHEAT Futures - (R/t) R 4,545 R 5,12 R 4,75 R 4,262 JSE WHEAT (R/t) US HRW (US$/t) US SRW (US$/t) 12 August 216 % w/w % w/w % w/w Weekly average Sep-216 R 4,35.1% % % Dec-216 R 4, % % % Mar-217 R 4, % % % May % % Jul % % Source: JSE, USDA, CME Calculated Wheat Option prices (R/ton) RMB commodity desk (Tel: ) Sep-16 Dec-16 Mar-17 Ask Put Call Ask Put Call Ask Put Call 4, , , , , ,

7 FNB Agri-Weekly Page 7 48, Graph 3e: Wheat Import Trends (tons) Marketing Season 48 Graph 3f: Wheat Import & Export Trends (tons) Marketing Season 4 4, 32, , , 8, OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP Source: SAGIS; 213/14 214/15 215/16 OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP IMP-214/15 IMP-215/16, RHS EXP-214/15 EXP-215/16, RHS Oilseed market trends (Graph 4) International: (R/ton) Graph 4: Derived Oilseed prices Good crop conditions, the slightly firmer 7,88 US dollar and high crop estimates kept 7,44 prices on the downside. 7, US export sales were reported at 2.1m 6,56 6,12 tons, up 16% w/w while shipments 5,68 remained virtually unchanged at 5,24 868, tons. Demand remains firm in China with the USDA announcing that 4,8 4,36 3,92 private exporters reported sales of 3,48 381, tons to China. 28-Aug-15 1-Jan-16 6-M ay-16 9-Sep-16 Derived Soya Derived Sunflower The recent IGC projections came out Sunflower-spot Soya-spot bearish for the market. The soybean production was raised higher by 4 tons to 325m tons, largely due to the better production conditions in the US that will boost output. The carryover stocks came in slightly higher to 32m tons from 3 in the IGC July report. Strong import demand will underpin trade progress, with China remaining the biggest buyer. China's import demand was raised by 4 tons y/y for 215/16 and 216/17 at 84m and 88m tons respectively. Graphs 4a and 4b reflect the USDA estimates. 35, 3, 25, Graph 4a: World soybean production trends ( tons) 9, 8, 7, Graph 4b: World soybean: Ending Stocks vs Stocks/Usage ratio Ending Stocks Stocks/Usage ratio 3% 25% 15, 6, 5, 4, 2% 15% 1, 5, 3, 2, 1, 1% 5% % Source: USDA, WASDE, PSD

8 FNB Agri-Weekly Page 8 Domestic: Prices were lifted by the reversal of rand fortunes and the spill over gains from the international market. Demand was reportedly good which added further support. Sunflower seed processing advanced slightly higher m/m in July 216 at 64,629 tons with a cumulative to date figure reaching 232,537 tons, but still trailing last year s 294,27 tons. Sunflower prices gained 2% w/w at R6,13/ton, which is about 6% higher y/y. Nonetheless, the current prices are off the 216 peak of R8,56/t which is a drop of R2,43/t or 25% lower. Soybean prices also trended firmer at R6,486/ ton, up 1.8% w/w and 29% y/y. This is however down by 15% or R1,11/ ton. On harvest outlook, the expected sunflower production for 215/16 is 742,75 tons and soybeans at 75,25 tons all unchanged from the previous estimate. OUTLOOK The trend in global prices remains sideways with slight upside potential on good demand in Asian markets while harvest pressure from South America continues to provide downside pressure. On the domestic market, the rand will remain a major driver in prices direction as the turmoil in our politics persists for a bit longer Graph 4c: Weekly JSE SOY price change (R/ton) ,15 Graph 4e: Weekly JSE SUNS price change (R/ton) Source: JSE JSE SUNS (R/t) % w/w JSE SOYA (R/t) % w/w US SOYA (US$/t) % w/w Weekly avg R 6,13 2.3% R 6, % % Sep-216 R 6,23 5.1% R 6,47 1.6% % Dec-216 R 6, % R 6, % % Mar-217 R 6, % R 6, % % May-217 R 6,3 4.7% R 6,4 1.9% % Jul-217 R 6,5 4.% % Source: JSE, CME Oilseeds Futures Dec-16 Mar-17 May-17 Jul-17 Sep-17 CBOT Soya oil (US c/lb) CBOT Soya cake meal (US$/t) Calculated Sunflower Option prices (R/ton) RMB commodity desk (Tel: ) Dec-16 Mar-17 May-17 Ask Put Call Ask Put Call Ask Put Call 6, , , , , , , , ,

9 FNB Agri-Weekly Page 9 Sugar market trends (Graph 5) International: International raw sugar prices rallied over the week on uncertainties revolving around India s sugar trade policies and low global inventory levels. 16 Government officials in India met for 15 deliberations on proposed suspension of 13 sugar trade in order to curb speculative purchases and stabilise prices. This caused panic across the global markets as sugar supplies are currently at the lowest in years Aug De c Apr Aug- 16 The trend in sugar prices over the last 12 months has been upwards and they have almost reached levels twice that of the same time last year. Raw sugar prices were up 3% w/w at US2.53 cents/lb and futures were up across the board. ICE sugar futures were firmer across the board with the Mar-17 contract up 4% w/w at US21.9 cents/lb. Sugar for May-17 delivery gained 3.4% w/w at US2.49 cents/lb. ICE Sugar Futures Mar-17 May-17 Jul-17 Oct-17 Mar-17 Sugar No.11 (US c/lb) % Change w/w 4.% 3.4% 3.% 2.8% 2.6% Source: InterContinental Exchange (ICE) Graph 5: World Raw Sugar Price (USc/lb) No.11 (Usc/lb) Graph 5a: World Sugar ending stocks trends ( tons) Graph 5b: World Sugar production and % Cane 5, 45, 4, 35, 3, 25, 2, 15, 1, 5, Total Sugar Production ('t) % Cane 82% 8% 78% 76% 74% 72% 7% Source: USDA, PSD Domestic: The RV price came in higher on the domestic market. According to reports released by the Cane Growers Association, the August Recoverable Value (RV) price for cane delivered in July came in at a new high of R5,41.76 per ton, up by R63.5 m/m. According to the Cane Growers Association, this is on the back of 15% hike in the local market national sugar price which was implemented effective from July 13, 216. The downside pressure came from the 27,993 tons improvement in sugar output, the firmer R/US$ and the.29% decline in sugar:rv ratio.

10 FNB Agri-Weekly Page 1 Vegetable Market Trends (Graphs 6a to 6e): South Africa s 5 Major Fresh Produce Markets (Average Pretoria, Bloemfontein, Johannesburg, Cape Town and Durban) Tomatoes (5 major markets) Tomato prices reversing last week s losses and trended higher on tight volumes across the markets. The average weekly tomato prices settled at R3,351 per ton, up 22% w/w but still down 37% compared to last year. Volumes traded reached 4,815 tons, down 14% w/w but 1% higher y/y. No upside is expected in the short term as volumes remain relatively high. Graph 6a: F resh P ro duce M arkets -T o mato prices 11,28 1,34 9,4 8,46 7,52 6,58 5,64 4,7 3,76 2,82 1, Aug-15 1-Jan-16 6-M ay-16 9-Sep-16 Volumes (ton) (RHS) Potatoes (5 major markets) Potato prices posted sharp losses on the back of higher volumes as harvesting continues. The weekly average potato prices closed at R3,748 per ton, down 9% w/w but still up 146% y/y. Volumes traded reached 14,64 tons, up 15% w/w and down 7.3% y/y. It is expected that prices will be confined to a sideways trend in the short to medium term as inventory levels remain elevated. Onions (5 major markets) In the onion market, prices eased lower as a result of higher volumes across markets. The weekly average onion prices shed 4% over the week, but were more than double last year s level at R5,613 per ton. Volumes of onions traded came in up 7% on the week but still down 16% y/y at 5,492 tons. It is however expected that onion prices will rebound slightly on strong uptake across markets. 8,32 7,68 7,4 6,4 5,76 5,12 4,48 3,84 3,2 2,56 1,92 1,28 64 Graph 6b: Fresh Produce Markets - Potato prices Aug-15 1-Jan-16 6-May Sep-16 Volumes (ton) (RHS) 9,24 8,4 7,56 6,72 5,88 5,4 4,2 3,36 Graph 6c: Fresh Produce Markets - Onion prices ,52 1, Aug-15 1-Jan-16 6-M ay-16 9-Sep-16 Volumes (ton) (RHS)

11 FNB Agri-Weekly Page 11 Carrots (5 major markets) The carrot market resumed the weaker trend on volume pressure. Weekly carrot prices were down 17% w/w, averaging R2,57 per ton, but still up 12% y/y. Volumes of carrots traded reached 1,92 tons, up 1% w/w but down 8% y/y. Expectations are that the market will continue to trend sideways but with limited upside potential in the medium term. Graph 6d: Fresh Produce Markets - Carrot prices ,5 2,25 2, 1,75 1,5 1,25 1, Aug-15 1-Jan-16 6-M ay-16 9-Sep-16 Volumes (ton) (RHS) Cabbages (5 major markets) The cabbage market resumed the weaker trend due to increased supplies on markets. The weekly cabbage prices closed at R1,737 per ton, shedding 1% w/w but still 12% higher y/y. Volumes of cabbages traded reached 1,92 tons, up 1% w/w but down 6% higher y/y. Marginal recovery is expected in the short to medium term as demand lifts. However, the generally higher volumes will continue to limit upside potential. Graph 6e: Fresh Produce Markets - Cabbage prices 4,94 4,56 4,18 3,8 3,42 3,4 2,66 2,28 1,9 1,52 1, Aug-15 1-Jan-16 6-May Sep-16 Volumes (ton) (RHS) Vegetable prices: South Africa s Major Fresh Produce Markets. (Average Pretoria, Bloemfontein, Johannesburg, Cape Town and Durban) Week ending Average Total Price (R/t) w/w y/y Volume (t) w/w y/y Tomato 3,287-2% -4% 5,524 15% 23% Potato 3,916 4% 68% 14,6-4% -9.3% Onion 5,23-7% 142% 6,14 12% -15% Carrot 2,299-8% 5% 2,284 19% 2% Cabbage 1,787 3% 23% 1,768 9% 6% Source: FNB AgriComms

12 FNB Agri-Weekly Page 12 The Fruit Market Trends 5 Major Fresh Produce Markets in SA (Graphs 7a to 7f) Graph 7a: Fresh Produce Markets - Apple prices 9, 3,5 8, 3, 7, 6, 2,5 5, 2, 4, 1,5 3, 1, 2, 1, 5 29-Aug Dec Apr Aug-16 Quantity (ton) (RHS) Graph 7b: Fresh Produce Markets - Avocado prices 36, 7 33, 3, 6 27, 24, 5 21, 4 18, 15, 3 12, 9, 2 6, 1 3, 29-Aug Dec Apr Aug-16 Quantity (ton) (RHS) Graph 7c: Fresh Produce Markets - Banana prices 1, 6, 8, 5, 4, 6, 3, 4, 2, 2, 1, 29-Aug Dec Apr Aug-16 Quantity (ton) (RHS) Graph 7d: Fresh Produce Markets - Grapes prices 8, 1, 7, 6, 8 5, 6 4, 3, 4 2, 2 1, 29-Aug Dec Apr Aug-16 Quantity (ton) (RHS) Graph 7e: Fresh Produce Markets - Mango prices Graph 7f: Fresh Produce Markets - Pear prices 7, 1,4 6, 1,2 6, 1,2 5, 1, 5, 4, 3, 2, 1, , 3, 2, , 2 1, 2 29-Aug Dec Apr Aug-16 Quantity (ton) (RHS) 29-Aug Dec Apr Aug-16 Quantity (ton) (RHS) Source: FNB AgriComms FRUIT PRICES: Major FPMs. (Average Pretoria, Bloemfontein, Johannesburg, Cape Town and Durban) Week ending Average Price (R/t) w/w y/y Total Volume (t) w/w y/y Apples 6,923 1% 14% % -1% Avocados 11,827 11% 1% 437 4% 4% Bananas 7,575-8% 72% % -46% Grapes 51,18 7% -1% 3-2% 48% Pears 31,582-3% -1% 729 1% 27% Source: FNB AgriComms

13 FNB Agri-Weekly Page 13 FNB Business Agriculture Meet our dedicated team of Agricultural Managers in various regions of South Africa Name Location Cell phone Address** Grewar, Oosthuizen EASTERN CAPE -Port Elizabeth Edmund, De Beer EASTERN CAPE -Port Elizabeth David, Dobrowsky FREE STATE -Bethlehem Martin, Louw FREE STATE -Theunissen Chris, Bekker FREE STATE -Bloemfontein Jan, Theron GAUTENG -Pretoria Greg, Sparrow KwaZulu-Natal -Pietermaritzburg Jurgens, du Preez KwaZulu-Natal -Newcastle Herman, Claassens LIMPOPO -Tzaneen Adolf, Grobler LIMPOPO -Bela-Bela Stephan, Scheepers MPUMALANGA -Nelspruit Theo, Verwey MPUMALANGA -Pretoria Pedrie, Van der Merwe NORTHERN CAPE -Kimberly Frik, Coetzee NORTHERN CAPE -Upington Johan, De Klerk NORTH WEST -BRITS Johan, Strydom NORTH WEST -Potchefstroom Johan, Beukes WESTERN CAPE -Stellenbosch Lize, Morris WESTERN CAPE -George Arno, Cloete WESTERN CAPE -Willowbridge **Please ignore the spaces in the addresses; they were inserted to break the links. grewar.oosthuizen edebeer1 ddobrowsky mlouw1 cbekker jantheron greg.sparrow jurgens.dupreez herman.claassens agrobler sscheepers2 tverwey pedrie.vandermerwe frik.coetzee jdeklerk2 cstrydom jbeukes lmorris arno.cloete Disclaimer: This report may contain certain opinions, predictions and assumptions and has been compiled from a variety of sources. Accordingly, you use the information in this report ( this information ) at your own risk and should not rely on it as a substitute for obtaining any specific professional advice you require. Accordingly, First National Bank, a division of FirstRand Bank Limited ( FNB ) provides no warranties or undertakings of any kind, whether express, implied or otherwise, concerning this information, its accuracy and/or reliability. Neither FNB nor its holding company, subsidiaries or other group companies will be liable to you for any claims, demands, expenses, losses or damages, of whatsoever nature, which you may suffer or incur by using this information.