DAILY MARKET REPORT 24 DECEMBER 2018

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1 DAILY MARKET REPORT 24 DECEMBER 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 trading around R14.51/$ with the stronger dollar adding some pressure. The rand traded as high as R14.69/$ in the session on Friday. South African equities posted some gains on Friday with the JSE Top40 ending 0.45% higher. In the US the dollar is stronger trading around to the euro this morning and US equities once again ended sharply lower with the Dow ending 1.81% lower in the daytime session on Friday and this morning the Dow futures are 0.50% higher. Commodity prices are mixed with gold prices 0.52% higher on some safe haven buying while platinum prices are 0.73% lower this morning. Brent crude oil prices are 0.15% higher than the levels seen at Safex close on Friday. US Dollar/South African Rand Key data releases: No major data releases

2 International Market Quote at 12h00 previous day Current quote Change % Change CME Mar maize CME Jul maize CME Mar wheat KCBT Mar wheat KCBT Jul wheat Matif Mar wheat (Euro/ton) CME Jan soybeans Mar CME maize R/ton Jul CME maize R/ton Mar CME wheat R/ton Mar KCBT wheat R/ton Jul 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 slightly higher on Friday due to some short covering and technical buying that was seen. This morning the electronic prices are slightly lower. In the US maize export market the USDA announced private sales of tons of US maize that was sold to an unknown destination for delivery in the 2018/19 season. In the world market Taiwan bought tons of maize which will be sourced from the US or Brazil. In South America some showers was seen the past weekend and some more rainfall is forecasted for Argentina in the week ahead which should be beneficial for their maize crop. On the chart for March CME resistance is seen around $3.78-$3.80 and support is seen at $3.68 and the $3.55 area. Soybeans US soybean contracts traded lower trading to a 3-week low with the slower than expected pace of Chinese buying and the improving South American soybean crop weighing on prices. This morning the electronic prices are also lower. In the US soybean export market the USDA announced private sales of tons of US soybeans that was sold to an unknown destination. However market participants are looking for more US sales to China. Improved South American weather conditions have boosted the soybean crop prospects for Brazil and Argentina which is weighing on global soybean prices. Wheat US wheat prices traded lower setting a new 2-week low after Russia boosted their grain export estimates while the US continues to face major competition in the export market. This morning the electronic prices are slightly higher. The Russian government raised the grain export estimate for the 2018/19 marketing season which could be a sign that they do not plan to curb export anytime soon. On the chart for March KCBT wheat we see that the market has broken below the 40-day average and prices did get some support around $5.00/bushel. 2

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

4 South African Market 21 December 2018 Maize South African maize prices started the day higher on Friday with some more gains that was seen after the opening. March white maize started the day at R3115 and posted some strong gains after that trading to a high fo R3249 (limits up) and the market traded around limits for some time. We did see some late selling/long liquidation with some of the weather models expecting some rainfall towards the end of the week. US maize prices are flat this morning and the rand is slightly weaker resulting in slightly higher parity prices this morning. The weather forecast expects some showers Friday/Saturday for the eastern parts of the country. However the rainfall forecasted for the western parts of the country has once again moved further out to Monday/Tuesday new week. Wheat South African wheat contracts opened the day higher with some more buying that was seen after the opening with the weaker rand adding some support. March wheat contracts started the day at R4453 which was also the intraday low with some solid buying that was seen after that. The market traded to an intraday high of R4519 breaking above the 100-day average and ending the day close to the session highs. US wheat prices are lower this morning which is putting some pressure on parity prices despite the weaker rand. We did see some buying in our market on Friday and the weaker rand this morning could once again be supportive for local wheat in the session today. Oilseeds White Maize MTM Change High Low Mar May Jul Yellow Maize Mar May Jul Wheat Mar May Jul Sunflower Mar May Soybeans Mar May CME Corn Mar Jul South African soybean contracts started the day lower on Friday with some buying that was seen after the opening. March soybean contracts started the day at R5060 and surged higher after that trading to a high of R5196 but the market failed to hold the intraday gains and sold off into the close but still ending the day slightly higher. South African sunflower seed contracts opened the day mostly flat the market trading on both sides of the opening after that. Sunflower seed contracts started the day at R5580 and attempted to gain some ground trading to a high of R5635 but the market pulled off the session highs ending the day around the opening levels. 4

5 US soybean contracts are lower this morning which is putting some pressure on parity prices despite the weaker rand. The lower parity prices could weigh on our oilseed markets in the session today. 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 2018/12/21, , , , , N/A, N/A SMA, MAWH9, Trade Price(Last), /12/21, SMA, MAWH9, Trade Price(Last), /12/21, SMA, MAWH9, Trade Price(Last), /12/21, SMA, MAWH9, Trade Price(Last), /12/21, /04/ /01/08 (JHB) Price ZAR T Auto RSI, MAWH9, Trade Price(Last), 14, Wilder Smoothing 2018/12/21, Value ZAR T May 2018 June 2018 July 2018 August 2018 September 2018 October 2018 November 2018 December 2018 Jan Auto 6

7 Daily CH9 Cndl, CH9, Trade Price, 2018/12/24, / 4, 379, / 4, / 4, -0 3 / 4, (-0.20%), SMA, CH9, Trade Price(Last), 40, 2018/12/24, / 2+, SMA, CH9, Trade Price(Last), 9, 2018/12/24, / 8+, SMA, CH9, Trade Price(Last), 100, 2018/12/24, / /11/ /01/15 (CHG) Price USc Bsh / / / / RSI, CH9, Trade Price(Last), 14, Exponential, 2018/12/24, /8 Value USc Bsh December 2017 January 2018 February 2018 March 2018 April 2018 May 2018 June 2018 July 2018 August 2018 September 2018 October 2018 November 2018 December 2018 Jan Auto 7