Maravi

ZAMAC projects continued decline in maize prices

ZAMAC projects continued decline in maize prices
By Kabanda Chulu
Tuesday April 10, 2007 [04:00]

ZAMBIA Agriculture Marketing Corporation (ZAMAC) has noted that prices of maize will continue to decline because of low demand and uncertainties surrounding the export of the product. And there were minimal activities in transactions concerning soya beans while the market recorded no trading activities for sunflower, sorghum and wheat.

This is contained in the latest ZAMAC bulletin released by CHC Commodities Limited yesterday that continued low demand coupled with uncertainty whether exports will take place and at what levels have contributed to the decline in prices.

Currently maize prices are ranging between US$ 165 and US$ 175 per metric tonne while a 50 kilogramme bag was costing between K35, 557 to K37, 712, compared to last week’s price offers of K44, 000 per 50 kg bag.

Last week the government indefinitely suspended the issuance of export permits for Maize. Initially, government had allowed the farmers union to export 20,000 metric tonnes, 15, 000 metric tonnes and 15,000 metric tonnes to the Grain Traders Associations.

But the ban on export of maize has unsettled the Zambia National Farmers Union (ZNFU) with executive director Songowayo Zgambo, saying that the government’s decision might lead to a marketing disaster because the country had enough maize stocks.
However, some industry sources said maize exports would only resume after the national food balance sheet report was released next month.

“The scale of exports to be allowed is to be based on the outcome of this report once it is officially established that there is a surplus and its scale,” said the sources.

The bulletin stated that expectations of lower price levels would continue since there is a surplus crop from the carry over stock of over 300,000 metric tonnes and that main harvests from June onwards would also push down the price levels of maize.
The bulletin stated that demand for soya beans had reduced though there were indications that there would be increased interest from April onwards.

The prices of soya were traded at US$ 250 per metric tonne and K57, 875 per 50 kilogramme bag and were based on the exchange selling rate from Standard Chartered Bank at US$ 1 to K4, 310.

“Soya prices are anticipated to be reduced further on the
expectation of a combined carryover stock and fair harvest resulting in a surplus although there are no firm figures on carryover stock or crop size to back up this expectation at present,” it stated.

The report stated that there were no trading activities in sorghum,sunflower and wheat.

Labels: MAIZE

posted by MrK @ 3:44 AM