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Edgar Vhera-Agriculture Specialist Writer
FARMERS have pocketed US$30 033 from the sale of 105 tonnes of maize on day 2 of the weekly Zimbabwe Mercantile Exchange (ZMX) agricultural commodities auction, registering an increase of25 percent from last week’s US$24 050.
Statistics from ZMX show a 13 percent increase in the volume of maize traded from 93 tonnes last week to 105, 38 tonnes.
According to the auction results, buyers submitted maize bids for 230 tonnes at an average price of US$281, 74 per tonne worth US$64 800.
Sellers were willing to sell 1 105, 38 tonnes of maize at an average price of US$330, 18 per tonne valued at US$364 979, 50.
At the end of the auction, 105, 38 tonnes were sold at an average price of US$285 per tonne to generate US$30 033, 30 in earnings.
A total of 1 224 bids and offers with an average price of US$328, 79 were unsuccessful.
The ZMX said prices were firming up an indication that sellers were now starting to realise fair price for their maize and the market functioning well.
The country’s maize marketing season is mainly between June to August during which period supply is high relative to demand and therefore free market forces cause prices for bulk sales to be lowest at this time of the year.
In the fourth quarter of the year maize supply from farmers decline and prices tend to increase over this period.
Stockfeed Manufacturers Association of Zimbabwe executive administrator, Dr Reneth Mano said the monthly commercial demand from stockfeed and milling industry, confectionary and brewing industry was fairly stable every month.
“This year we expect the country to remain largely self-sufficient through the end of the year. We expect that the local market to be short of maize from January to June next year.
“Hence some farmers and grain traders may buy maize now at current prices of US$260 to US$285 for sale in recurrent domestic hunger season from February to May 2024 and realise high prices,” said Dr Mano.
Dr Mano said it was very important for domestic farmers and contractors to understand the seasonal pattern of domestic grain market price movement from harvest time to the end of commercial grain marketing season.
He said it was unfortunate at the inaugural ZMX weekly auction that there were some speculators and opportunists who were offering their maize for sale at high prices of US$$335 per tonne, a price which is only expected to prevail at the tail end of grain marketing season next year.
Online Reporter