Tuesday, April 20, 2021 / 2:58 PM/
Kainosedge Consulting for AFEX Commodities Exchange / Header Image Credit: AFEX Commodities Exchange
The AFEX Commodities Index (ACI) upturned by 2.09% (W-o-W) closing the reporting week at 399.8 points because of the moderate increase in maze price coupled with a sight increase in paddy rice price. Year-to-date returns closed at 26% at the end of the week.
It was another quiet week for the AFEX Export Index (AEI) as it has remained fiat for three consecutive weeks now at 159.35 points as cocoa remained flat being out of season while ginger maintained its price from the previous weeks.
Sesame experienced an increase in price of 1.05% (W-o-W) while cashew maintained its price from the previous week closing at N48,117/contract and N40,000/contract respectively.
A total of 181.567 deals were traded during the reporting week by players on the exchange. This is especially ascribed to the surge in maize and cashew deals compared to other commodities on the exchange.
Last week, maize led the chart with the highest deals traded on the exchange closing with 174,110 deals followed by cashew with exchange traded deals of 6,751. Amongst all commodities traded on the exchange cocoa and ginger recorded no deals for the last week.
For the reporting week, on the exchange, maize and paddy rice appreciated by 4.17% and 0.1%, respectively. Simultaneously, sorghum prices declined by 5.21% while other commodities maintained the prices from the previous week.
Prices from the local open market survey for soybean, paddy, sorghum, ginger, sesame, and cashew were higher than exchange-traded prices. While maize closed at a higher price on the exchange when compared to the open market price during the reporting week.
Week-on-Week in the open market, there was a general price increase in commodities except for ginger, Maize, soybean, paddy rice, sorghum, and sesame increased by 3.14%, 2.69%, 5.99%, 2.5%, and 5.58%, respectively. Whereas ginger experienced a decline of 1.2% (W-o-W).
Based on the survey recently carried out by AFEX, farmers in key producing regions are currently not in the market to sell their stock, postponing entry into the market to early May in order to get income to purchase input ahead of the Wet-season cultivation Hence, there is an expected increase in prices of grains this week due to the current selling strategy of farmers.