Monday, May 10, 2021 / 6:20 PM /
Kainosedge Consulting for AFEX Commodities Exchange / Header Image Credit: AFEX Commodities Exchange
The AFEX Commodities Index (ACI) appreciated sightly by 0.48% (W-o-W) closing the reporting week at 38189 points. The increase in maize price was the major driver of the ACI growth. However, a decline in Soybean price weighed on the performance of the index during the week.
The AFEX Export Index (AEI) hatted a 5-week flat performance as the index declined by 8.02% to close at 146.57 points following the transactions in light cocoa on the exchange. Ginger, however, remained flat.
Amongst all commodities on the exchange only maize. soybean, cocoa, and cashew recorded deals. Paddy rice. sorghum, ginger, and sesame had no executed trades.
A total of 342.456 deals were closed in the reporting week. In contrast to a total of 70,130 contracts the previous week.
All commodities on the exchange except for maize. Soybean and cocoa maintained their price levels from the previous week. Maize moderated marginally by 1.05% (W-o-W). Meanwhile, soybean declined sightly by 0.38% (W-o-W). Early harvest of cocoa came to play in the exchange, providing a start price of N87,0000/contract for the season.
Sesame maintained its price level for three consecutive weeks of N48,117/contract. Cashew also retained its price from the previous week and both commodities recorded zero trades on the exchange during the week.
Comparing open market prices with exchange traded prices, maize, sorghum, paddy rice. cocoa, ginger, sesame, and cashew were higher in the open market. While soybean closed at a higher price on the exchange for the reporting week.
In the open market, while other production areas have started experiencing favorable weather conditions, some areas in Katsina is yet to experience rainfall to kickstart the wet planting season. The effect of this situation in Katsina has led to the hoarding of grains by traders and farmers, increasing its prices in the market.
Market players expect moderation in grain prices as farmers in key producing regions currently sell their stockpile in preparation for the upcoming wet season planting.