Commodities exchange records increased participation, demand
AFEX Commodities Exchange Limited said the commodities market was highly competitive in 2019 with a significant increase in the number and sophistication of buyer participating in the markets.
In its 2019 market review, AFEX said the demand-supply ratio of the cocoa market increased from 3:1 to 6/7:1.
It added that the grains market also showed similar demand-supply dynamics with maize, soybean and paddy rice increasing by 4.72
per cent, 5.99 per cent and 10.32 per cent respectively.
It noted that to increase the chances of fulfilling orders and achieving the procurement targets of off-takers and industrial users along the various value chains in the country, it would ensure the aggregation during harvest periods to ensure an adequate supply of commodities during the lean season to mitigate price shocks.
AFEX said owing to the cash implications of the first strategy, an alternative aggregation
strategy would be the use of the wide network of traders transacting on the exchange to pursue fast aggregation.
It stated that the commodities market in Nigeria was deservedly gaining strength as more players got involved in a variety of activities along commodity value chains.
The report read in part, “This increased involvement has led to a growth in the value chains as players support more seamless transactions in the industry.