Wednesday, September 23, 2020 / 9:30AM
/ Kainosedge Consulting for AFEX Commodities Exchange / Header Image Credit: AFEX Commodities Exchange
The AFEX Commodities Index composite increased marginally by 0.48% as against previous week's performance, closing at 271.02 point. The increase was a result of an uptick in the price of Soybean, which increased by 1.54% as against the previous week's performance.
On the Exchange, Maize and Paddy Rice experienced no change while Soybean increased in the week under review compared to the previous week, thus, closing at N179,666/MT, N148,833/MT and N215,000/MT for Maize, Soybean and Paddy Rice respectively. Sorghum and Ginger however maintained their price levels in the week under review, while Cocoa increased by 8.18%
Concerns pertaining to the increasing population in Nigeria and the low agricultural yield is expected to lead to food insecurity in Nigeria , of which the low yield is usually as a result of climate situations (excess rainfall, little rainfall, flood, etc) affecting the harvest of small hold farmers in Nigeria. This is expected to cause a strain on the supply of the commodities as demand will by a large extent outweigh the supply of the commodities in the country.
In the Open Market, Ginger experienced an increase, while Paddy Rice and Ginger retained their performance as that of the previous week. Maize, Sorghum and Soybean dropped.
The total volume of trades executed on the Exchange in the week under review totaled 156.49MT with Maize, Soybean, Sorghum and Cocoa accounting for 75.05%, 0.96%, 0.06% and 23.93% respectively.