AFEX Commodities Weekly Report (July 19 – July 23): AFEX Commodities Index outperforms other indexes

Season to date (S-t-D), the ACI (AFEX Commodities Index) outperformed the S&P GSCI Agriculture Index. However, the AEI(AFEX Exports Index) performed slower when compared to both indexes. Week on week (W-o-W), the ACI  and AEI  declined by 1.82% and 2.27%, respectively, closing at 477.11 and 171.52 index points, respectively.

T H I S W E E K I N T H E M A R K E T S

Following the approval by Argentina lawmakers (a top soyoil exporter) to reduce the amount of soy-based biofuel to be mixed into domestically-consumed diesel, its international prices are expected to decline. The largest coffee producing country experienced an unusual drop in temperature to freezing levels during the week, damaging trees and harming prospects for next year’s crop. This led to a surge in coffee prices.

Domestic open market prices for majority of commodities tracked increased week on week after recording price decline for two consecutive weeks. Supply and demand in local markets were lower this week as the Muslims celebrated Id el Kabir.

M A R K E T P R I C E P E R F O R M A N C E

Closing Exchange prices of soybean and maize
declined while prices of other commodities stayed
muted W-o-W as sorghum, ginger, and sesame
recorded no trades on the exchange.
• In the open market, the increase in prices of all grains
except for paddy rice was as a result of further scarcity
of those commodities induced by shrinking supply.
• International prices of maize and soybean declined
slightly in contrast to cocoa and ginger. Cocoa
international prices was up because of Europe’s
increase in demand.

COMMODITIES & OTHER ASSETS

W-o-W, the ACI and AEI declined by 1.82% and
2.27%, respectively, closing at 477.11 and 171.52
index points, respectively.
• The ACI is due to price decrease in some of its
components, maize and soybean on the
Exchange and also influenced by the significant
price decline of paddy rice in the open market.
• In contract, the S&P GSCI Agriculture Index
appreciated by 0.85%(W-o-W) to close at 411.54
index points.
• S-t-D, the ACI outperformed the S&P GSCI
Agriculture Index. However, the AEI performed
slower when compared to both indexes.
• A total of 1,660 contracts were executed last
week

M A R K E T O U T L O O K

USDA raised forecasts for soybean production and stocks globally on the back of
better weather conditions.
• In the domestic open market, maize farmers who planted by the riverside have
started harvesting, with high moisture content. Prices are expected to decline
when it enters into the market at a reduced moisture content.
• General open market prices are expected to increase further due to limited supply
available.