Monday, September 14, 2020 / 1:25 PM
/ Kainosedge Consulting for AFEX Commodities Exchange / Header Image Credit: AFEX Commodities Exchange
The AFEX Commodities Index composite retained its performance this week from the previous week, as it closed at 249.47 points. This is as a result of reduced trades on the Exchange.
For the commodities covered by the index, maize, soybean, and paddy rice experienced no change in the week under review when compared to the previous week, thus, closing at N179,666/MT, N146,579/MT, and N215,000/MT, respectively. Cocoa increased by 0.93% while sorghum and ginger maintained their price levels.
Last week, a flood destroyed about 25% of the paddy rice harvest in Kebbi State (the centre of rice production in Nigeria). This is expected to lead to an increasing strain on the domestic supply of the commodity as the Federal Government still takes a strong stand on the restriction of food importation into the country, thus the price of paddy rice is expected to increase as it is one of the go-to staple foods in Nigeria.
Furthermore, the CBN approved the importation of 262,000 tons of maize into the country, as the excess demand led to an increase in the price of the commodity and consequently an increase in the price of poultry feed. This action was taken by CBN as poultry farmers were on the losing side of the maize importation ban.
In the Open Market, maize, sorghum, soybean, and paddy rice experienced an uptick in their prices while cocoa and ginger prices remained unchanged.
The total volume of trades executed on the Exchange in the week under review totaled 9.59MT with maize, sorghum, and cocoa accounting for 1.29%, 1.04% and 97.66% respectively.