Increase of Market Activities Anticipated in the Coming Week

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Monday, May 25, 2020 / 5:45 PM  /  Kainosedge Consulting for AFEX Commodities Exchange

 

The AFEX Commodities Index inched higher by 6.05% at the close of trading last week to settle at a season-high of 186.65 points. The rally in the ACI came on the back of increased processor demand in the maize and paddy rice markets.

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Following weeks of processor absence in the maize markets, processors resumed inventory procurement as stocks have begun to deplete below maintenance thresholds, leading to a 6.92% spike in the price of maize in the week under review.

 

Converse to the established trend of a price reset in the commodities market during harvests, a combination of the impact of reduced imports of rice through the land borders, the imminence of the Eid-ul-Fitr celebrations, and the high influx of processor demands drove up prices astronomically. Season to date gains in the price of paddy rice rose to 30.44% at the end of last week to mark the highest price point so far in the season.

 

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Season start prices during the dry season harvest of paddy rice in key producing areas have been buoyed largely by overwhelming demand of processors seeking to procure paddy to meet up with demand during the - Eid-ul-fitr celebrations. As indicated, farm gate prices range from 160,000 - 165,000 per tonne, making this the highest price witnessed since the inflation induced prices of 2017.

 

Similarly, prices have spiked by as much as 6.92% in the maize market as processors scramble to fulfill depleted inventory requirements and - sustain production.


 Proshare Nigeria Pvt. Ltd.


 Proshare Nigeria Pvt. Ltd.

 

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