admin
Edgar Vhera
Agriculture Specialist Writer
THE weekly Zimbabwe Mercantile Exchange (ZMX) agricultural commodities auction recovered from a dip of 17 tonnes on Day 3 to record a 767 percent increase to 147, 32 tonnes on Day 4.
Statistics from ZMX show that 147, 32 tonnes of maize worth US$42 722, 80 successfully exchanged hands against last week’s 17 tonnes valued at US$ 4 845.
This represents a 767 percent rise in volume and a 782 percent increase in value.
The auction results show that buyers submitted maize bids for 800 tonnes at an average price of US$273, 75 per tonne worth US$219 000.
Sellers were willing to sell 747, 32 tonnes of maize at an average price of US$306, 06 per tonne valued at US$228 724, 76.
At the end of the auction, 147, 32 tonnes were sold at an average price of US$290 per tonne to generate US$42 722, 80 in earnings.
A total of 1 252 bids and offers with an average price of US$289, 20 were unsuccessful.
It is interesting to note that buyers requested more than what sellers were willing to sell.
Sellers also sold 20 percent of the maize they brought on the market, unlike the previous week when they only sold one percent.
The ZMX said the bid and offer prices were gradually converging, with average bid prices increasing from US$230 per tonne on day 2 to US$274 on day 4, while the average offer price decreased from US$330 per tonne to US$306 over the same time period.
An analyst who requested anonymity said success of the ZMX trade could be guaranteed only if GMB’s maize purchases from farmers were taken into reserve stock and not offered for sale.
“Trading of maize of the ZMX platform can be enhanced only if major consumers of grain are encouraged to source their maize requirements on this trading platform, rather than to purchase from GMB held stocks,” said the analyst.
GMB is selling maize to buyers at US$200 plus US$168 at the interbank of every Tuesday.
Recently, stockfeed manufacturers association of Zimbabwe (SMAZ) executive administrator Dr Reneth Mano said it was unfortunate 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 was only expected to prevail at the tail end of grain marketing season next year.
He said it was very important for domestic farmers and contractors to understand the seasonal pattern of domestic grain market price movements from harvest time to the end of commercial grain marketing season.
Online Reporter