ACI Monthly prompt: CBN’s Policy Response on Maize caused by Lean Season

ACI monthly prompt: CBN’s Policy Response on Maize caused by Lean Season.

The open market prices surged for maize (14.72%  M-o-M) and paddy rice (17.7% M-O-M) thereby maintaining a 4-month consistent double-digit percentage price increase from March, 2020. This is in response to the lean season of the crop calendar in the agrarian North which indicates a continued depletion of market stocks from the last planting season which was terminated in December 2019. The current narrow supply has resulted in a policy response by the Central Bank which has stopped the provision of scarce foreign exchange for the import of maize.

The M-o-M volatility declined for Maize and Soybeans, and increased for paddy prices on the Exchange; Maize 7%, Soybeans 10%, and Paddy Rice 12%.  This is as a result of reduced trades on the Exchange.

In the International Market; maize and soybeans prices increased marginally in August; soybeans increased by 1.7%, while maize increased by 2.2% M-o-M. Paddy rice average monthly price on the other hand eased considerably by 8.3% due to seasonal market liquidity from Asian producers.

Economic contractions are increasingly being acknowledged globally, and still pose a direct threat to market demand uncertainty, an outcome of the COVID-19 pandemic. However, market supply remains strong, as production continues to increase in South America for maize and soybeans

ACI commodities monthly prompt for August 2020
ACI commodities monthly prompt for August 2020
ACI commodities monthly prompt for August 2020

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