Graph 1b: Beef prices - % changes (y/y) 13.5% 8.6% 8.6% Class C Class A Contract. Class C

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1 Agri-Weekly Livestock and Fibre Markets 3 September 216 Weekly summary of South Africa s livestock markets: Beef trends Graph 1a: Beef prices - weekly % changes (w/w).5%.4%.4%.3%.2%.2%.2%.1%.%.% 15.% 1.% 5.%.% -5.% Graph 1b: Beef prices - % changes (y/y) 13.5% 8.6% 8.6% Class C Class A Contract Class A -1.1% Weaner calf Graph 1c: Beef prices - % change 3 months ago 14.% 12.2% 12.% 1.% 8.% 6.% 4.% 2.% 1.3% 1.%.%.3% Table 1: Beef producer prices Beef market - South Africa Date 3-Sep Sep Sep-16 3-Year Avg 5-Year Avg Class A (R/kg) % 11.8% Class C (R/kg) % 17.9% Contract: A (*Incl.5thQ, R/kg) % 11.6% Import parity (R/kg) % 11.5% Weaner calves (R/kg LW) % 8.8% LW Live Weight; *Fifth quarter Graph 1d: JSE BEEF CARCASS FUTURES (R/KG Dec Source: JSE, AgriHQ, Own Calculations Graph 1e: Beef price trends (ZA R/kg) 4,38 4,12 3,86 3,6 3,34 3,8 2,82 2,56 2,3 2,4 1,78 1,52 2-Oct-15 5-Feb-16 1-Jun Oct-16 Class A Class C NZ Cow import parity,d/bn **The last two data points are preliminary Contract Weaner calf Domestic: The strength in the beef market continued on slight improvement in demand and moderation in supplies. Weekly Class A beef prices trended firmer at R38.28 per kg, which is 9% higher y/y. The current prices are almost 6% and 12% higher than the three-year and five-year averages respectively. Contract Class A beef prices were marginally higher on last week at R38.46 per kg, which is up 9% y/y and 6% ahead of the 3-year average. Class C beef prices were almost unchanged w/w at R32.81 per kg, but up 14% y/y.

2 FNB Agri-Weekly: Livestock & Fibre Markets Page 2 In the cattle market, weaner calf prices were unchanged on last week as demand softened. Weekly weaner calf prices steadied at R2.6 per kg live weight but still down 1% y/y. Nonetheless, the current prices are 1.8% higher than the three-year average as reflected in table 1. In the slaughter market, there has been a slowdown in the number of cattle slaughtered in the past two weeks as producers held on to their stock in anticipation of improved production conditions in the new season. However, some areas remain extremely dry leaving producers with no option but to continue to offload animals in excess of their current capacities. The price trend for the hide market remains sideways which is a reflection of a slowing demand in the automobile sector and the generally weaker global economy. Graph 1f: Weekly commercial cattle slaughter trends (head) 24, 21, 18, 15, 12, 9, 6, 3, Source: RMMA; Hides: the September 216 figure is preliminary Graph 1g: Average hide prices per kg International beef market update The US import market remained under pressure from increased domestic supplies and slow seasonal demand. This saw import prices trending moderately lower. At wholesale level, US domestic boxed beef prices were steady to lower with the choice category slightly up by 1.2% w/w but down by 9.5% y/y at US$188.63/cwt. The select beef carcass values eased to US$179.2/cwt, down 13% y/y. The United States Department of Agriculture (USDA) s weekly slaughter report showed a 3.2% w/w increase in cattle slaughtered, which is up 7.4% on last year at 611, head. The year to date cattle slaughter reached million head, up 4.4% y/y. Meanwhile, China has reportedly removed the ban on imports of US bone-in and boneless beef for livestock under the age of 3 months with conditions. This will see trade resume for the first time since 23. China s beef and veal imports rose sharply by 59% y/y in 215 and are expected to grow by 24% y/y in 216 to 825, tons JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Graph 1h: US Cattle price trends Cutter 9% lean, US /kg cwt Feeder - CME Index, US /kg lwt Choice Fed, US /kg lwt Graph 1i: Australian cattle price trends (US /kg cwt) Heavy steer Medium cow Trade steer Source: MLA, In Australia, cattle prices strengthened on the back of reduced volumes as rains fell in some of the producing areas. The benchmark Eastern Young Cattle Indicator finished the week marginally higher at Au$7.17/kg cwt, which is 21% higher y/y. Rains are critical for pasture recovery and the herd rebuilding phase which is expected to commence soon following a massive culling due to drought and the increased export demand.

3 FNB Agri-Weekly: Livestock & Fibre Markets Page 3 In New Zealand (NZ), traders have reportedly indicated a weak export market as the combination of a surging NZ dollar and the weaker US market eroded margins. NZ exports were reported down 2% y/y in August 216 with declines to the US and China. Graphs 1j to 1k illustrate the extent of beef production across the world. Beef production is expected to recover in 216 while stocks continue to decline. 61, 6, 59, 58, 57, 56, 55, 54, 53, Graph 1j: World beef and veal production trends ( tons) Figure 1k: World beef import, export & stock trends (' tons) Imports Exports Ending Stocks, RHS 12, 1, 8, 6, 4, 2, Source: USDA, PSD OUTLOOK Focus has now turned on weather as it is critical to get decent rains to kick-start the herd rebuilding process and reduce dependency on purchased feed. Most producing areas remain dry and it has become increasingly difficult to hold on to the stock for a bit longer if it does not rain. The industry has no choice but to start rebuilding herds now in order to ensure sustainability of supplies of live animals in the longer term. Weekly summary of the sheep market -.5% -1.% -1.5% -2.% Graph 2a: Sheep - weekly price % changes (w/w).5%.%.3% LambClass A -.3% -.7% FeederLamb Contract Class A -1.7% Mutton 1.8% 1.7% 1.6% 1.5% 1.4% 1.3% 1.2% 1.1% 1.% Graph 2b: Sheep prices - % changes (y/y) 1.7% 1.6% 1.4% Mutton LambClass A Contract Class A 1.3% FeederLamb Graph 2c: Sheep prices - % change 3 months ago 15.% 1.% 5.%.% 14.1% Contract Class A 8.% 7.6% 3.9% Mutton LambClass A FeederLamb Table 2: Producer prices Sheep market - South Africa Date 3-Sep Sep Sep-16 3-Year Average 5-Year Average Class A (R/kg) % 2.2% Class C (R/kg) % 19.2% Contract: A (*Incl.5thQ, R/kg) % 2.9% Import parity (R/kg) % 11.4% Feeder lamb (R/kg LW) % 21.% LW Live Weight; *Fifth quarter Domestic sheep market update Prices ended mixed with Class A lamb maintaining a firmer trend on good month end demand. Weekly Class A lamb prices were a bit firmer w/w at R61.73 per kg, but still 11% and 8% higher respectively compared to last year and the same period three months ago. Contract Class A lamb prices however eased marginally lower to close at R61.88 per kg, but still up 1% y/y. Mutton prices pulled back from the recent highs and closed at R48.45 per kg, but still 11% higher y/y. The current prices are up 8% compared to the same week three months ago. This week saw a further reversal in price direction for the feeder lamb market as demand slipped. Weekly feeder lamb prices were marginally down at R29.96 per kg live weight, but still 1% higher y/y.

4 FNB Agri-Weekly: Livestock & Fibre Markets Page 4 Sheep slaughter continued to increase with latest figures for the week ended 23 September up 24% w/w and were 64% higher compared to the same period last year. Sheep slaughter in 216 remains substantially higher compared to the two last years. The cumulative sheep slaughter number is 14% and 73% higher than the 215 and 214 levels respectively. 6, 5, 4, 3, 2, 1, Graph 2d: Weekly commercial sheep slaughter trends (head) ,4, 1,2, 1,, 8, 6, 4, 2, Graph 2e: Cummulative sheep slaughter trends (head) Source: RMMA International sheep market update: Australian (AU) lamb market saw modest decline in prices due to increased volumes despite recent rains. The Eastern Trades Lamb Indicator fell by 4% w/w but still 15% higher y/y at Au$6./kg cwt. Supplies are expected to improve further in the medium term due to the seasonal availability of young lambs. Meanwhile, production conditions are expected to improve due to forecasts of rains for the remainder of 216. The Australian Bureau of Meteorology (BOM) has reportedly forecasted above average rainfall for the October to December period. In New Zealand (NZ), the weak export market continued to affect returns with the total value of lamb shipments during August 216 reportedly dropping by 4% y/y. On the domestic front, domestic farm gate prices sharply higher with the 17.5kg lamb closing at NZ$12.1/ head but still down 2% y/y. Mutton prices increased sharply to NZ$58.2/ head, but still down by 3% y/y. In the US, the lamb market maintained a softer trend with the carcass cutout values closing down 1.4% w/w and 2% y/y at US$319.39/ cwt. The estimated weekly US sheep slaughter was 4, head, up 5.3% w/w and 21% y/y. This brings the year-to-date slaughter number to 1.5 million head, which is almost unchanged compared to last year Graph 2f: Australian lamb prices - ESTLI (Au$/kg cwt) Source: JSE, MLA, AgriHQ, Own Calculations. ***ESTLI Eastern Trades Lamb Indicator Graph 2g: Sheep price trends (ZA R/kg) 7,12 6, 4,88 3,76 2,64 1,52 2-Oct-15 5-Feb-16 1-Jun Oct-16 Lamb Class C Contract lamb NZ Lamb parity ZN Mutton parity ***The last two data points are preliminary OUTLOOK The delay to the onset of the grazing season has resulted in increased sheep slaughter but the medium term outlook has improved. Supplies are expected to tighten as pasture conditions improve should seasonal rains materialise, thus maintaining upward pressure on prices.

5 FNB Agri-Weekly: Livestock & Fibre Markets Page 5 Weekly summary of the pork market 5.%.% -5.% -1.% -15.% Graph 3a: Pork prices - weekly % changes (w/w).8%.5% -12.2% Baconers Porkers Import parity Graph 3b: Pork prices - % changes (y/y) 15.% 11.8% 11.6% 1.% 5.%.% -5.% -1.% -15.% -1.% Baconers Porkers Import parity 1.%.% -1.% -2.% -3.% -4.% Graph 3c: Pork prices - % change 3 months ago 3.9%.% -32.% Porkers Baconers Import parity Table 3: Producer prices Pork market - South Africa Date 3-Sep Sep Sep-16 3-Year Average 5-Year Average Porker (R/kg) % 12.6% Baconer (R/kg) % 13.6% Import parity (R/kg) % -1.1% Source: FNB AgriComms; JSE, USDA, Own Calculations Domestic pork market update The pork and baconer market retained the firmer trend on the back of good demand and limited supplies. Weekly porker prices closed at R25.8 per kg, up.5% w/w and 12% y/y. The current prices are up by almost 4% compared to the same period three months ago. In the case of baconers, prices moved marginally higher by.8% w/w at R23.81 per kg. This is 12% higher y/y but was unchanged compared to the same period three months ago. Weekly import parity prices dropped by 12% w/w and 1% y/y due to the combined effect of a sharp decline in international prices and further rand gains. Graph 3d: Weekly commercial pork slaughter trends (head) 216 3, 25, 2, 15, 1, Graph 3e: Pork price trends (ZA R/kg) 5, Oct-15 5-Feb-16 1-Jun Oct-16 Porker Baconer Import parity Export parity Source: RMAA, JSE, USDA, Own Calculations **The last two data points are preliminary In the monthly pork import update, the monthly SARS figures showed a sharp increase in volumes imported during August 216. Pork imports increased by 37% m/m but still down 22% y/y at 1,644 tons. The year-to-date pork imports reached at 14,886 tons, which is down by a whopping 36% compared to the same period last year. Graph 3f: Pork Import Trends (tons) Graph 3g: Pork Monthly Import Trends (tons) Year-to-date: August 216 7, 3, 2, 1, , 5, 4, 3, 2, 1, JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Source: SAPPO, SARS, Own Calculations; *Excludes BNLS countries

6 FNB Agri-Weekly: Livestock & Fibre Markets Page 6 International pork market update In the US market, pork prices drifted lower on moderation in demand. The weekly pork carcass values fell by 4.2% w/w and 11% y/y to US$75.86/ cwt. The estimated weekly pork slaughter number was down 1.2% w/w but still 7.4% higher y/y at 2.44 million head. Year to date, the number reached 86.29m head, up 1% y/y. USDA reported pork inventories for August 216 up 1.4% compared to the average pace of 2% but still down 7% y/y. However, ham stocks increased at a rapid pace which is bearish for the remainder of the year. Stocks of pork bellies were down 37% m/m but still up by a whopping 132% y/y. On the export front, shipments were reported up by 1,6 tons to 19,55 tons for the week and this stronger trend is expected to continue in the medium term. Graph 3a: World pork production trends Graph 3b: Worl pork import, export & stock trends (' tons) 2, World beef production (tons, LHS) China-share of world production, RHS 52% 8, 7, Exports Imports Ending Stocks, RHS 8 7 5% 6, 6 1, 48% 46% 44% 42% 5, 4, 3, 2, 1, Source: USDA, OUTLOOK The trend in domestic prices remains sideways to firmer in the short term but there is increased potential for an upswing due to the seasonal increase in demand as the favourable braai weather returns. The spill over strength from the beef market will help prices remain elevated. Weekly summary of the poultry market Graph 4a: Poultry prices - weekly % changes (w/w) 4.% 3.2% 3.% 1.8% 2.%.9% 1.%.1%.% Frozen Fresh Import Parity IQF Graph 4b: Poultry prices - % changes (y/y) 5.% 2.6% 1.3%.9%.% -5.% -1.% -15.% -2.% -25.% -3.% -27.4% IQF Fresh Frozen Import Parity 5.%.% -5.% -1.% -15.% Graph 4c: Poultry prices - % change on 3 months ago 3.6% 3.% -2.3% -12.9% Frozen IQF Fresh Import Parity Table 4: Producer prices Poultry market - South Africa Date 3-Sep Sep Sep-16 3-Year Average 5-Year Average Fresh whole birds (R/kg) % 5.4% Medium Frozen whole birds (R/kg) % 5.2% Individually Quick Frozen (IQF) (R/kg) % 9.% Import parity (R/kg) % -14.% Source: FNB AgriComms; JSE, USDA, Own Calculations Domestic poultry market update Despite subdued market conditions, prices managed to lift modestly as we head deep into the braai months. Weekly medium frozen whole bird prices posted strong gains and finished up 3.2% w/w and.9% y/y at R21.34 per kg. The current prices are 3.6% higher compared to the same period 3 months ago.

7 FNB Agri-Weekly: Livestock & Fibre Markets Page 7 Fresh whole bird prices gained 1.8% w/w and 1.3% y/y at R22.13 per kg. At this level, prices have decreased by 2.3% compared to the same period three months ago. In the Individually Quick Frozen whole bird market, prices advanced marginally to close at R18.64 per kg which is 2.6% and 3% higher and compared to the corresponding weeks last year and three months ago respectively. Graph 4d: Poultry/maize price ratio Sep Jan May-16 3-Sep-16 Source: Own Calculations, USDA, JSE Graph 4e: Poultry price trends (ZA R/kg) 9. 2-Oct-15 5-Feb-16 1-Jun Oct-16 Frozen whole Fresh whole Imported Leg Quarter (US) IQF #REF! **The last two data points are preliminary 36, 3, 24, 18, 12, 6, Graph 4f: Poultry Import Trends Year-to-date: August Total Poultry Broiler 7, 6, 5, 4, 3, 2, 1, Graph 4g: Poultry Monthly Import Trends (tons) JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Source: SARS, Own Calculations; *Excluding BNLS International poultry market update US broiler complex saw losses across most categories with the exception of leg quarters which were up 1.6% w/w but still down by 32% y/y. The harvest outlook for feed grains for both the US and the world is bullish which bodes well for the poultry sector in terms of improved feeding margins. Grain harvesting is already under way in the US and so far yields are reportedly good. USDA s Cold Storage report showed a modest drawdown in stocks. As of 31 August 216, total US frozen poultry supplies fell 4% m/m but up 4% from a year ago. Total stocks of chicken were down 6 percent from the previous month and down 1 percent from last year. However, strong US export sales have reduced the inventory levels for dark meat which saw the leg quarter stocks falling by almost 9% m/m and 1% y/y. In the case of breast cuts, stocks were reported about 12% higher than last year and almost 3% above the five-year average. Graph 4h: World broiler meat production trends ( tons) 1, 8, 6, 4, 2, Source: USDA, PSD 4,5 4, 3,5 3, 2,5 2, 1,5 1, 5 Graph 4i: Major broiler meat exporters (' tons) Brazil United States European Union

8 FNB Agri-Weekly: Livestock & Fibre Markets Page 8 OUTLOOK The market is set for a slight rebound in the medium term as the braai weather returns and the seasonal outdoor activities increase. Further gains in the red meat market will provide added support for poultry prices. While margins remain under pressure due to high feed costs (see graph 4d), the longer term feed outlook has improved with maize futures for Jul-17 already trending below R3,/t. The expected lower feeding costs in the year ahead should help improve profitability in the sector. Wool and cotton market trends (Graph 5) Graph 5: Cotton & w ool prices International: (SA c/kg) Cotton prices saw marginal losses on favourable Wool Cotton harvest weather in the US and weak export sales. 17,61 The US harvest is reportedly progressing well but 16,33 lack of producer selling weighed heavily on the 15,5 market. 13,77 Weekly cotton prices eased by.5% w/w but still 17% higher y/y at US78.52 cents/ lb. 12,49 11,21 Cotton futures on the InterContinental Exchange (ICE) reversed recent gains and finished lower across the board below the US7 cents/ lb level. 9,93 8,65 Cotton for Dec-16 delivery closed down 2.8% at * last two data points are preliminary US68.8 cents/ lb. The farthest Jul-17 cotton futures price fell by 2.5% w/w at US69.6 cents/lb. ICE Cotton Futures 3 September 216 Source: InterContinental Exchange (ICE) Dec-16 Mar-17 May-17 Jul-17 Oct-17 Cotton (US c/lb) % Change w/w -2.8% -2.7% -2.6% -2.5% -2.8% 3, 2,8 2,6 2,4 2,2 2, 1,8 1,6 1,4 1,2 2-Oct-15 5-Feb-16 1-Jun Oct-16 SA Wool Aus Wool Cotton A-Index ICE Futures Graph 5a: World cotton production trends (' 48-lb bales) Graph 5b: World major cotton importers (' 48-lb bales) 14, 12, 1, 8, 6, 4, 2, 9, 8, 7, 6, 5, 4, 3, 2, 1, 214/ /216 Graph 5c: World cotton imports (' 48-lb bales) Graph 5d: World cotton ending stocks (' 48-lb bales) 6, 5, 4, 12, 1, 8, Ending Stocks, LHS Stock to Use (%), RHS , 6, 6 2, 4, 4 1, 2, 2 Source: USDA, PSD;

9 FNB Agri-Weekly: Livestock & Fibre Markets Page 9 Wool market: The Australian wool market trended sideways as the slow start early in the week was offset by strong gains towards the end of the week. This saw the AWEX Eastern Market Indicator (EMI) closing at AU$12.9 per kg clean wool, but still up 6% y/y. Volume of sales came in sharply lower at 31,449 bales which is 93% of the total offerings. Fibre market prices 23 September 216 SA prices (R/kg) Australian prices (R/kg) Australian futures Mar-17 (AU$/kg) Australian futures May-17 (AU$/kg) Wool market indicator (R/kg) long length wool (R/kg) long length wool (R/kg) long length wool (R/kg) Fibre market prices 23 September 216 SA derived Cotton (R/kg) New York A-Index (US$/kg) Cotton Futures Dec-16 (US$/kg) Cotton Futures Mar-17 (US$/kg) Cotton Prices (R/kg) Cotton Futures - InterContinental Exchange (ICE); SA Wool closed for the week Domestic wool market The wool market weakened further on rand gains which saw the Cape Wools Indicator closing down 1.6% w/w but almost 12% higher y/y at R145.9 per kg clean wool. Major buyers were Standard Wool SA with 2,52 bales (28.1%), G Modiano SA with 1,95 bales (26.1%), Lempriere SA with 1,428 bales (19.6%), and Stucken & Co with 1,11 tons (15.1%). 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, 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 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.