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

Proshare

Tuesday, January 19, 2021 / 10:40AMKainosedge Consulting for AFEX Commodities Exchange / Header Image Credit: AFEX Commodities Exchange


Proshare Nigeria Pvt. Ltd.


The AFEX Commodities Index continues its 4weeks bullish trend, increasing by 4.91% for the reporting week. This increase could mostly be attributable to the increase in the price of maize, soybean and sorghum on the Exchange, Given the nature of grains in the country, prices are expected to continue on a bullish trend as local production is below local demand, especially for maize, as the commodity costs more in neighbouring countries like Niger and Benin thus suppliers are encouraged to smuggle the commodity for higher income.

 

The AFEX Export Index continues to remain bullish for the reporting week, as it experienced an uptick of 1.97% against the previous week, which was driven by the uptick in the price of cocoa despise the fall in ginger prices on the Exchange.

 

Proshare Nigeria Pvt. Ltd.

 

Total volume traded on the Exchange in KG during the week stood at 12.2million. Maize recorded 11.7million KG as the largest traded volume during the period, while sorghum recorded the lowest trade volume for the week as 600KG.

 

Proshare Nigeria Pvt. Ltd.

 

During the reporting week, maize closed at N177/KG increasing by 5.77% W-o-W, while paddy rice experienced the largest price decline on the last trading day of the week (-5.70% W-o-W), closing at N181/KG for the reporting week. Soybean continues its bullish trend for the 2nd consecutive week since the start of 2021, increasing by about 17% as against the previous week, this is mostly attributable to the Demand-Supply dynamics of the commodity in the country as the highest producing regions (Benue, etc.) harvest was low due to inadequate rainfall.

 

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

 

Proshare Nigeria Pvt. Ltd.

 

Week-on-Week in the open market, maize prices increased by 7.66%. Similarly soybean, sorghum and ginger increased by 2.52, 7.01 and 4.57 percent respectively. Paddy rice decreased by 1.25 percent, while cocoa and sesame remained the same as the previous week's price in the open market.

 

Market Talk

Coarse grain prices are well above their year-earlier value as the effects of the 2020 harvest did not dip prices as much as expected. This is mainly as a result of the low harvest yield of 2020 and the supply chain bottleneck amid generally difficult macro-economic conditions (farmers insecurity) particularly in the northern regions of the country.

 

Proshare Nigeria Pvt. Ltd.


Related News

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

2.      AFEX Commodity Focus on Maize: The Goldmine of Feed Grains

3.      Will Gold Prices Rally in 2021? Here are Its Ebbs and Flows

4.      House Committee On Capital Markets Lauds Management of LCFE As Trading Begins Soon

5.      Supply Shortages from India to Keep Sugar Prices Up

6.      Depletion of Global Stocks Causes Price Hikes in the International Market

7.      Coronavirus Vaccine: Tailwind for Oil, Headwind for Gold

8.     No Respite for Food Prices Amidst Onion Scarcity

9.      Cocoa Supply Challenges to Persist on Lingering Political Tensions in Ivory Coast

10.  ACI Experienced a Positive Performance - AFEX Commodities Weekly Report 291020

11.   ACI Experienced a Positive Performance - AFEX Commodities Weekly Report 231020

12.  October 2020 Commodity Markets Outlook: Lower Oil Demand Likely to Persist Beyond 2021

 

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

READ MORE:
Related News
SCROLL TO TOP