DAILY MARKET REPORT 17 APRIL 2019

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1 DAILY MARKET REPORT 17 APRIL 2019 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 is stronger this morning trading at R13.99/$ with the dollar mostly flat compared to the levels seen yesterday. The rand failed to sustain a break above the 100-y average and pushed lower after that. South African equities posted some gains with the JSE Top40 ending 1.21% higher. Key data for the local market will be the March consumer inflation data due later today. In the US the dollar is trading around to the euro this morning and US equities managed some gains with the Dow ending 0.26% higher in the daytime session yesterday and this morning the Dow futures are 0.03% higher. Commodity prices are mixed with precious metal prices under some pressure with gold and platinum prices 0.55% and 0.73% lower with higher equities limiting the demand for safe haven assets. Crude oil prices are 1.20% higher than the levels seen at Safex close yesterday. US Dollar/South African Rand Key data releases: Weekly South African producer deliveries South African March CPI South African retails sales US Trade balance

2 International Market Quote at 12h00 previous day Current quote Change % Change CME Jul maize CME Dec maize CME Jul wheat KCBT Jul wheat KCBT Dec wheat Matif May wheat (Euro/ton) CME Jul soybeans Jul CME maize R/ton Dec CME maize R/ton Jul CME wheat R/ton Jul KCBT wheat R/ton Dec KCBT wheat R/ton Jul CME soybeans R/ton The changes in the table above is from Safex close (12h00) Corn US maize prices traded lower in the session yesterday on some technical selling that was seen while the ample supplies also limited the buying interest. This morning the electronic maize prices are mostly flat. Wet weather in parts of the US Midwest could slow the planting of maize in the US but it is still very early in the US planting season. In the world maize export market Taiwan issued a tender to buy tons of maize. The maize can be sourced from the US, South America of South Africa. On the chart for July CME maize we see that the market sold off finding some support around $3.66 once again and ending the day slightly off the session lows. The moving averages remain under pressure. Soybeans Wheat US soybean contracts ended lower in the session yesterday with the lack of any progress in the US/China trade talks weighing on the market. This morning the electronic soybean prices are trading slightly higher. The US trade adviser Larry Kudlow said that trade talks will continue this week but the lack of any significant progress started limited some of the buying interest in US soybeans. On the chart for July CME soybeans we see that the market did get some resistance and the 9- day average and prices pulled lower after that. CME soybeans did get some support at $9.00 but the market ended the day very close to the session low. US wheat prices traded lower in the session yesterday with KCBT wheat setting new contract lows with the winter wheat crop ratings and global supplies weighing on the market. This morning the electronic wheat prices are slightly higher. The global supplies of wheat continue to be a bearish factor for prices. In Germany their 2019 wheat crop is estimated at million tons which is 20.6% higher year/year. This follows the larger Russian wheat crop estimate seen earlier this week. On the chart for July KCBT wheat we see that the market broke below the $4.30 support and traded to a new low of $4.20. Prices ended the day off the lows. The moving averages and indicators remain under pressure but the market is oversold. There could be some divergence between the RSI and prices. 2

3 US rainfall forecast for the week ahead US 6-10 Day precipiation forecast US 6-10 Day temperature forecast 3

4 South African Market 15 April 2019 Maize South African maize prices opened the day slightly higher with the market finding some support at the 200-day moving average and white maize posted some more gains after that. The buying interest gained some momentum late in the day with the market trading to an intraday high of R2739 and the market ended the day slightly off the session highs. On the chart immediate resistance is seen at the 9-day average seen at R2745. US maize prices are lower this morning and the rand is slightly stronger resulting in lower parity prices. We did see some strong buying in especially our white maize market into the close yesterday but the lower parity prices this morning could put some pressure our maize prices once again. Wheat South African wheat contracts opened the day higher with some more gains that was seen after the opening. July wheat started the day at R4660 and the market briefly traded to an intraday low of R4650 with some renewed buying that was seen after that with the weaker rand adding support. July wheat traded to an intraday high of R4675 and the market ended the day slightly off the session highs. US CME and KCBT wheat prices are lower this morning the CME wheat leading the way lower. The rand is also slightly stronger resulting in lower parity prices. The stronger rand seen this morning could put some pressure on local wheat prices. Oilseeds White Maize MTM Change High Low May Jul Dec Yellow Maize May Jul Dec Wheat May Jul Dec Sunflower May Jul Soybeans May Jul CME Corn Jul Dec South African soybean contracts opened the day slightly higher with the market coming under some pressure after the opening. July soybeans started the day at R4882 with some selling that was seen after the opening. The market traded to an intraday low of R4860 but the market managed to gain some ground into the close ending the day very close to the session highs and the opening levels. South African sunflower seed contracts started the day higher with some more gains that were seen after the opening. July sunflower seed started the day at R5080 and briefly traded to a low of R5067 with some buying that was seen after that. The market traded to an intraday high of R5147 with sunflower seed finding some resistance at the 9-day average and the market pulled off the highs into the close. 4

5 US soybean contracts are lower this morning and the rand is stronger resulting in lower parity prices this morning. The lower parity prices could put some pressure on local sunflower seed and soybean contracts in the session today. Weather conditions Cumulative rainfall forecast for the week ahead Technical Graphs Safex Jul maize prices CME Jul corn prices 5

6 Daily MAWN9 Cndl, MAWN9, Trade Price 2019/04/16, , , , N/A, N/A SMA, MAWN9, Trade Price(Last), /04/16, SMA, MAWN9, Trade Price(Last), /04/16, SMA, MAWN9, Trade Price(Last), /04/16, SMA, MAWN9, Trade Price(Last), /04/16, /05/ /05/07 (JHB) Price ZAR T RSI, MAWN9, Trade Price(Last), 14, Wilder Smoothing 2019/04/16, Value ZAR T June 2018 July 2018 August 2018 September 2018 October 2018 November 2018 December 2018 January 2019 February 2019 March 2019 April

7 Daily CN9 Cndl, CN9, Trade Price, 2019/04/17, 367, 368, 367, 368, 0, (-0.07%), SMA, CN9, Trade Price(Last), 40, 2019/04/17, 378, SMA, CN9, Trade Price(Last), 9, 2019/04/17, 369, SMA, CN9, Trade Price(Last), 100, 2019/04/17, /03/ /05/08 (CHG) Price USc Bsh RSI, CN9, Trade Price(Last), 14, Exponential, 2019/04/17, Value USc Bsh Mar 18 April 2018 May 2018 June 2018 July 2018 August 2018 September 2018 October 2018 November 2018 December 2018 January 2019 February 2019 March 2019 April