DAILY MARKET REPORT 17 SEPTEMBER 2018

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1 DAILY MARKET REPORT 17 SEPTEMBER 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 is weaker this morning and is trading at R14.92/$ with the stronger dollar weighing on the rand. South African equities managed some gains in the session on Friday with the JSE Top40 ending 0.90% higher. In the US the dollar is stronger and is trading at to the euro currently and US equities ended flat with the Dow ending 0.03% higher in the daytime session in Friday and this morning the Dow futures are 0.16% lower. Commodity prices are lower across the board with the stronger dollar adding some pressure. Gold and platinum prices are 0.87% and 1.98% lower than the levels seen on Friday while crude oil prices are 0.36% lower. US Dollar/South African Rand Key data releases: European Union inflation data

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 Nov 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 Nov CME soybeans R/ton The changes in the table above is from Safex close (12h00) Corn US maize prices ended higher in the daytime session on Friday with the spillover strength from the higher US wheat futures adding support. This morning the electronic maize prices are trading slightly lower. The harvesting of maize that is currently underway and the massive US maize crop and record yields are limiting some of the gains in the market. On the technical chart for December CME maize we see that the market did get some support around $3.50 and which was also the lows seen in July. The moving averages remain under pressure but there could be some divergence between the RSI and prices. Soybeans CME soybean contracts traded slightly lower in the daytime session on Friday with the ongoing trade war between the US and China weighing on the market. This morning the electronic soybean prices are trading lower. US President instructed his administration to proceed with tariffs on $200 billion worth of Chinese goods and China has vowed to retaliate once again. On the technical chart for November CME soybeans we see that the market attempted some gains but found resistance at the 9-day average and prices traded lower after that. Key support is seen in the $8.30-$8.20 area. Wheat CME and KCBT wheat prices traded sharply higher in the session on Friday with some end user buying and short covering that was seen. This morning the electronic wheat prices are also trading higher. Crop losses in the global wheat export market and an increase in demand in global exports also added some support. Although very little of the global demand is being filled by US wheat currently. Russia still has no plans to limit exports. On the chart for December KCBT wheat we see that the market did get some support at $5.00 and prices surged higher after that. There is some divergence between the RSI and prices and immediate resistance is seen at $5.19/bushel. 2

3 US cumulative rainfall forecast for week ahead (inches) US 6-10 temperature forecast US 6-10 Day rainfall forecast 3

4 South African Market 14 September 2018 Maize South African maize prices opened the day lower with the lower parity prices and some more follow through selling that was seen. December white maize started the day at R2410 and briefly traded to a high of R2421 but some more selling was seen after that. December white maize broke below R2400 and traded to a low of R2396 ending the day slightly off the session lows. On the technical chart the short term averages and indicators remain under pressure. US maize prices are slightly lower this morning but the weaker rand is still resulting in slightly higher parity prices which could provide some support to local maize in the session today. However local maize has been under some pressure in the past 3 trading sessions. Wheat South African wheat contracts started the day lower with the market trading on both sides of the opening levels. December wheat started the day at R4501 and traded lower after that with the market trading to an intraday low of R4477 with the market pulling well off the session lows and December wheat prices ended the day around the opening levels. US CME and KCBT wheat prices are sharply higher than the levels seen at Safex close on Friday and adding to this the rand is also weaker resulting in sharply higher parity prices this morning. The higher parity prices and weaker rand should be supportive for local wheat in the session today. Oilseeds White Maize MTM Change High Low Sep Dec Mar Yellow Maize Sep Dec Mar Wheat Sep Dec Mar Sunflower Sep Dec Soybeans Sep Dec CME Corn Dec Mar South African soybean contracts opened the day lower with some buying that was seen after the opening. December soybean prices started the day at R4645 and traded to a low of R4639 with some buying that was seen after that. December soybean contracts broke above the 100-day average and traded to a high of R4694 and prices ended the day slightly off the session highs. Sunflower seed contracts opened the day lower but some buying was seen after the opening. December sunflower seed prices opened the day at R5184 and traded to a low of R5175 with some buying/short covering that was seen after that. Sunflower seed contracts traded to a high of R5260 and the market ended the day slightly off the session highs. The strong performance and close could be supportive for our market in the sessions ahead. 4

5 US soybean contracts are lower this morning which despite the weaker rand is still pointing to lower parity prices. We did see some buying interest in our oilseed markets on Friday but the lower parity prices could limit some of the gains in our market. Weather conditions Rainfall forecast for week ahead Technical Graphs Safex Dec maize prices CME Dec corn prices 5

6 Daily MAWZ8 Cndl, MAWZ8, Trade Price 2018/09/14, , , , N/A, N/A SMA, MAWZ8, Trade Price(Last), /09/14, SMA, MAWZ8, Trade Price(Last), /09/14, SMA, MAWZ8, Trade Price(Last), /09/14, SMA, MAWZ8, Trade Price(Last), /09/14, /02/ /09/27 (JHB) Price ZAR T RSI, MAWZ8, Trade Price(Last), 14, Wilder Smoothing 2018/09/14, Value ZAR T February 2018 March 2018 April 2018 May 2018 June 2018 July 2018 August 2018 September

7 Daily CZ8 Cndl, CZ8, Trade Price, 2018/09/17, 352, 352, 350, 350, -2, (-0.50%), SMA, CZ8, Trade Price(Last), 40, 2018/09/17, 370, SMA, CZ8, Trade Price(Last), 9, 2018/09/17, 360, SMA, CZ8, Trade Price(Last), 100, 2018/09/17, /01/ /09/28 (CHG) Price USc Bsh RSI, CZ8, Trade Price(Last), 14, Exponential, 2018/09/17, Value USc Bsh Jan 18 February 2018 March 2018 April 2018 May 2018 June 2018 July 2018 August 2018 September