According to a commodities market report, maize and sorghum prices have dropped for the second week in a row due to a supply glut.
NenyKo learned this from AFEX’s weekly commodities market update report, which was released on Tuesday.
“In the open market, maize and sorghum suffered a 2-week drop, falling 3.73% and 0.02%, respectively.”
According to AFEX, this was attributed to a supply glut in the market.
“In the last trading week, the Exchange recorded a mixed performance. Maize stood as the top gainer w-o-w. Last week, Maize and Soybean stood as the most traded commodities on the Exchange, constituting 74% of the total volume traded”.
The AFEX Export Index (AEI) declined 2.94%, closing the week at 204.19 index points.
“New volumes of sorghum are expected to hit the market as the harvest continues, which may further moderate the price for the commodity in the coming weeks”, the report stated.