Speculators lose cash in produce trade.

June 19, 2018

The first harvest season 2018 is around the corner and it is anticipated to be a good one in most production locations countrywide. Maize in particular is expected in a week or two. Several traders who stocked grain confessed losses as stock piles of maize still held in different locations and yet new seasonal maize was expected soon.

In Kampala the grain market price was very stable at Ugx.680-690/kg for the third week and there was no hope for it “spiking” to Ugx.800/kg as most traders would have wanted it to rise in order earn a profit from the previous seasonal stock. The presence of all other staples on the market has also affected the grain price stable.

The influence from regional market demand did not affect price/supply as it usually does. It was noted that large grain buyers purchased enough grain for their contracts and a lot was not purchased.

At Busia border produce market, the demand for maize was moderate and an estimated 400MTs were purchased and loaded daily. The market expects newly harvested maize anytime from Bunyoli and Budama areas.

Good quality maize grain was bought at Ksh.19.7/kg (Ugx.738) while fair quality grain at Ksh.19/kg (Ugx.712). The least acceptable maize grain quality was purchased at Ksh.18.5/kg (Ugx.693).  A lot of grain was reported heading to Mombasa road/Voi and the “Kamba” area.

The maize volumes present for sale at the border market is said to have affected the sorghum price low. Sorghum was bought at Ksh.17/kg (Ugx.637). Transit traders bought less of it for maize. Sorghum was already harvested in northern Uganda especially between Lira and Gulu. Sorghum price dropped in the above locations to Ugx.300/kg (See spread sheet). In Kampala, it was bought at Ugx.350-380/kg wholesale price. There was no demand for it.

The rice price increased suddenly from Ugx.2800-3000/kg in the previous week sighting plenty supplied from Tanzania. Less was delivered from Tanzania and this escalated the market price to Ugx.3300/kg wholesale. Stock piles of Super rice were yet to be cleared into the market, however, it was also being regulated from source.

Plenty of beans were supplied to the market in Kampala. The beans market price declined again from the previous week’s price to as low as Ugx.1450/kg for large Nambale beans (Nabe4). The preferred short Nambale and yellow beans were offered at the same price Ugx.1600-1700/kg wholesale price.

At Busia border market, yellow beans were demanded and approximately 500MTs of assorted beans were bought on a daily basis. Supply was received Mbale and part of eastern region as well as western region (Mrarara-Mubende).  Mixed beans were also delivered from Rwanda via Kampala. Green grams and sorghum were also received sufficiently.

Yellow beans were bought at Ksh.48/kg (Ugx.1800), Short Nambale at Ksh.40/kg (Ugx.1500), Kidney beans at Ksh.42/kg (Ugx.1575), Rosecoco beans at Ksh.50/kg (Ugx.1875), mixed beans at Ksh.36/kg (Ugx.1350). Other commodities demanded by Kenyan traders included green grams at Ksh.48/kg (Ugx.1800), millet at Ksh.38/kg (Ugx.1425), Soya beans at Ksh.48/kg (Ugx.1800) and groundnuts at Ksh.97/kg (Ugx.3638)

Farmgain Africa

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