Monday, March 8, 2021 / 12:59PM / Kainosedge
Consulting for AFEX Commodities Exchange / Header Image Credit: AFEX Commodities Exchange
The AFEX Commodities Index (ACI) increased by 1.07% (W-o-W) to close at 397.43 basis points. This is attributable to the increase in the price soybean and sorghum on the exchange despite the decline in maize and paddy rice prices for the reporting week.
The AFEX Export Index (AEI} closed the reporting week with a negative performance. declining by 1.17% as against the previous week, closing the reporting week at 160.69 basis points, this is attributed to the decline in ginger prices for the reporting week.
Total volume traded on the exchange during the week stood at 742.619 contacts. 3 times more than volumes traded last week. Grains accounted for about c.98% of the total trades for the week. Ginger was the only export commodity traded last week.
For the reporting week. prices on the exchange experienced a decline compared to the previous week. this includes maize, paddy rice and ginger which declined by 1.17%. 374% and 2.50% (Vto-W) respectively. On the other hand, soybean and sorghum experienced a positive performance for the week increasing by 11.89% and 3.84% respectively as soybean closed the week at NGN31.117/contract while sorghum closed at NGN18742/contract on the last trading day of the week. Cocoa and sesame for the week remained unchanged as both commodities did not trade for the week on the exchange as both commodities are currently out of season in the country.
Local indicative open market survey prices for maize, sorghum, cocoa, ginger and sesame were lower than Exchange traded prices. However, players on the Exchange priced soybean and paddy rice lower than the open market prices during the week under review.
Week-on-Week in the open market. maze and soybean prices slightly increased by 0.09% and 0.05% respectively. While paddy rice and sorghum declined by 2.15% and 3.17% (W-o-W)} respectively. Cocoa, ginger and sesame remained unchanged for the week.
Today, AFEX lists Cashew on its exchange, as cashew has been identified as a commodity that can earn Nigeria FX. Also, market players are pessimistic about maize prices for the week as CBN releases about 50,000MT to the market.