Mixed Performance of Grains on the AFEX Commodities Exchange
At the close of trading last week, contracts recorded mixed performances on the Exchange. Sorghum and soybean topped the laggard chart, plunging 3.81% and 0.02% respectively w-o-w. A similar trend was witnessed in the open market for these commodities as prices slumped marginally amid the absence of big buyers in the market.
The crisis between Russia and Ukraine has not gone unnoticed, causing a spike in the prices of commodities from oil to agricultural products. For most commodities captured by AFEX, prices rose to reflect a supply chain disruption of these commodities to the international market. Wheat price, for example, rose to its highest in 14 years as trade partners with Ukraine, being the largest wheat exporter, sought for other supply sources.
Escalating tension in the Black Sea region continues to heighten concerns around global food security as fertilizer prices remain at high levels. In the domestic market, grains are expected to continue a declining trend amid lower demand for commodities.
Market Price Performance
- Soybean and sorghum dipped marginally on the Exchange as player priced contracts lower.
- The open-market price of cocoa gained for the eight-week due to the increased demand from the global market.
- Ukraine’s suspension of exports of several agricultural commodities in the face of Russia’s invasion caused the international price of grains to rise W-o-W.
Check out other relevant details on market performance by accessing the report here .