AFEX Commodities Index Recorded a Positive Weekly Performance as @120221

Proshare

Tuesday, February 16, 2021 / 9:28AM / Kainosedge Consulting for AFEX Commodities Exchange / Header Image Credit: AFEX Commodities Exchange


Proshare Nigeria Pvt. Ltd.


The AFEX Commodities Index (ACI) continued its 7-week bullish trend, as it increased by 3.62%, closing the reporting week at 388.95 basis points. This is attributable to the increase in prices of maize, soybean, paddy rice and sorghum which are constituents of the ACI.


The AFEX Export Index (AEI) closed the reporting week with a marginal 0.002% decline closing at 159.60 basis points as against the previous week. This is as a result of the negligible decline in ginger prices on the exchange while cocoa prices remain unchanged in the last 2 weeks.


Proshare Nigeria Pvt. Ltd.


Total volume traded on the exchange during the week stood at 239,163 contracts being a 14% increase from the volume traded last week. As grains accounted for about c.99% of the total trades for the week. Cocoa volume traded on the exchange surged as against the previous week, increasing by c.300% as we see gradual increase of international demand for export commodities on the exchange.


Proshare Nigeria Pvt. Ltd.

 

For the reporting week, soybean outperformed other commodities as price appreciated 13.31% W-o-W. Sorghum on the other hand hit its all time high after a marginal growth of 2.67% in price, settling at NGN19,195/contract. On the other hand, export commodities price like that of cocoa remained flat as 747 contracts were traded around NGN104,333/contract while Ginger experienced a minute decline by -0.01%. Sesame for the week increase marginally by 0.60% closing the reporting week at NGN47,617/contracts.


Local indicative open market survey prices for maize, paddy rice, sorghum, cocoa, ginger and sesame were lower than Exchange traded prices. However, players on the Exchange priced soybean, lower during the week under review.


Proshare Nigeria Pvt. Ltd.

 

Week-on-Week in the open market, maize prices declined marginally by 0.10%, also sorghum and ginger prices decreased by 1.49% and 4.79% respectively. On the other hand, soybean increased slightly by 0.63% while paddy rice, cocoa and sesame remained the same as that of the previous week.


Market Talk

Egg in Nigeria is a vital source of protein as it is usually affordable by the low- and middle-income class in the country who constitute the larger proportion of the county's population and the demand for the food item. Despite the increased price of the food item, and the demand significantly outweighing it supply, we expect an increase in the prices of grains used in making poultry feeds in the country.


Proshare Nigeria Pvt. Ltd.


Related News

1.       Nigeria Must Lay Emphasis on Structures to Achieve a Vibrant Commodities Market

2.      AFEX Indices Outperforms other Markets in the Nigerian Capital Markets

3.      Bullish Run Across Commodities on the Exchange - AFEX Commodities Monthly Report - December 2020

4.      The CBN's Planned Restructuring of the Nigeria Commodity Exchange Raises Concerns

5.      The Exchange Indices Closed on a Positive Note - AFEX Commodities Weekly Report 290121

6.      CBN Chairs Nigeria Commodities Exchange Repositioning Committee - A Note

7.       Agric Commodities in Nigeria Showed Resilience Amidst Recession, COVID-19 - Ayodeji Balogun

8.      The Exchange's Indexes Performed in Opposite Directions for the Reporting Week

9.      AFEX 2020 Review and 2021 Outlook: Nigerian Commodities Space Not Immune to the Impact of COVID-19

10.   The ACI and AEI Remain Bullish - AFEX Commodities Weekly Report 150121

11.    Price of Maize Set to Crash, 300,000MT of Maize for Release in February 2021

  

 Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

READ MORE:
Related News
SCROLL TO TOP