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