The ACI and AEI Closed Negative For the Week - AFEX Commodities Weekly Report 130821

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Wednesday, August 18, 2021 / 12:40 PM / Kainosedge Consulting for AFEX Commodities Exchange

 

This Week in The Markets

  • The partial closure of China's (the largest exporter of ginger and wheat) container port influenced by the rapid spread of the COVID delta variant is expected to reduce supply of the commodities in the international market which can result in a future temporal price increase.
  • Given the favorable weather experienced in some parts of Vietnam (one of the major exporters of rice), farmers are optimistic on quality harvest of the crop.
  • The entrance of new maize into the Nigerian domestic market drove the significant price decline of maize and sorghum. 

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Market Price Performance

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  • Cashew accounted for 83% of the total contracts closed on the Exchange while it maintained its price from the previous week.
  • The price of cocoa among other commodities tracked in the domestic open market increased in anticipation of the main crop harvest.
  • Cocoa price also increased in the international market as weather conditions in Ivory Coast's cocoa-growing regions has tempered hopes for a strong start to the upcoming main crop

 

Commodities and Other Assets 

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  • The ACI significantly appreciated by 10.24% after a three-week bearish performance.
  • It was a muted performance on the AEI the week closed at 177.69 index points, same as from the previous week
  • The S and P GSCI Agriculture Index appreciated by 4.59%(W-o-W) to close at 433.59 index points.
  • S-t-D, the ACI outperformed the S and P GSCI Agriculture Index. However, the AEI underperformed when compared to both indexes.
  • Total contracts closed spiked 95.2% (W-o-W) with 6,395 executed trades in the review period

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Market Outlook

  • The U.S. government slashed its outlook for domestic corn production by 2.7% and its soybean harvest view by 1.5% during the week as dry soils in key western growing areas reduce the potential for an abundant harvest.
  • The availability of sesame in the open market is expected to increase as its harvest season is currently ongoing in Taraba and Benue State.

 

 

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