Diesel price set to drop in August

Farmers who have started with primary soil preparation ahead of the new season stood to benefit from the drop, said Wessel Lemmer, senior agricultural economist at Absa AgriBusiness.

Going into the new season, the soil moisture content of many production areaswas much lower as a result of drought conditions. “This will make primary land preparation more expensive,” said Lemmer. But a reduction in the price of fuel could help lower production costs.

Looking ahead, Grain SA economist Wandile Sihlobo said the fuel price could decline further if the rand remained at around R12,42 to the US dollar and Brent Crude oil continued to trade below US$60 a barrel.