Commodities hoarding mounts pressure on prices of grains

Reviewing recent trading activity revealed that the prices of the majority of grains had increased on the open market. Due to market players’ stockpiling actions in anticipation of higher prices for these commodities due to the upcoming election, there was price pressure.

Sesame increased for the sixth week in a row, and this pattern is likely to continue in the months to come. With a closing percentage of 7.95% on a weekly basis, cashew lead the Exchange’s performers’ chart. Following closely behind, cocoa saw an increase of 7.36% over the same time frame.

Last week, 6,816,662 contracts were concluded on the Exchange, with 43% of those being for corn. The high domestic and global demand for most grain commodities is expected to result in price increases, according to market participants.

While waiting, join us for the official launch of the 2023 AFEX Annual Commodities Outlook on January 31, 2023 at 10 a.m. on Zoom, where we’ll talk about systematic factors affecting the African commodities market and reveal all there is to know about the current trends that will drive price and volume movements in 2023. Click here to register to attend.

Market price Performance

• On the Exchange, Cocoa and Cashew were the best-performing commodities. On the laggard chart for the week, sorghum came in front.
• Prices on the open market performed inconsistently overall. The biggest gainer was Sesame, which increased by 7.01%. The commodity’s export demand is to blame for this tendency.
• With the exception of paddy rice, sorghum, and cocoa, which had a little fall in price on the global market, all commodities saw increases in price.
• Access the study here to view further pertinent information on market performance.