A slowdown in stock piling by the Agricultural Development and Marketing Corporation (Admarc) has left many traders with huge stocks of maize which is now selling at lower prices, AHCX has reported.
A latest commodity update from AHCX indicates that maize prices have slightly subdued following a nervous period between April and June when prices rose sharply from around K100 to about K240 per kilogramme in the Central Region and K260 per kilogramme in the Southern Region.
AHCX attributes the trend to panic buying which saw traders rushing to rural markets to stock up the grain in readiness for the lean period
“Maize tenders from Admarc also increased demand for the commodity on market as traders competed viciously in buying the maize on the market for supply to the state grain marketer but a slowdown in stock piling by Admarc has left many traders which huge stocks which they are now selling at lower prices through AHCX, millers and other commercial users of the cereal,” part of the update reads.
AHCX further says the onset of the pigeon pea selling season has also prompted traders to offload their maize stocks at lower prices to raise resources for participation on the pigeon pea market.
There are, however, prospects that the prices will rebound.
“Seasonal factors are, however, expected to rebound maize prices on the market. The National Food Reserve Agency has since started procuring the grain at prices of up to K250 per kilogramme and this will soon translate into high prices for the grain in rural markets in the coming weeks. Prospects for importation of grain as well as sustained consumer sells from Admarc selling points could stabilise prices. Maize trades continue to dominate AHCX trading,” reads part of the statement.
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