During the month of June a considerable volume of maize grain was delivered from Tanzania via Mutukula border post to Uganda. This supply gradually declined when indications of the first seasonal harvest was pronounced which spiked off release of grain stocks held by speculators and traders hoarding maize to cushion losses created by high production estimates and high aggregation cost at this beginning of the year.
Tanzania was similarly pushing its maize grain to Kenya via Taveta, Namanga and Sirari border posts during the month of May towards June, however, as their season winded up, their grain price increased giving way to the cheaper Ugandan grain offered to Kenya in preparation for the seasonal harvest in late June.
Maize grain was offered at Tsh.500/kg farmgate in Dodoma and Songea becoming less competitive to the Ugandan grain via Mutukula border where it was offered at Ugx.700/kg.
The Tanzania produce traders have held on to their crop stocking in silos in anticipation of supplying to their neighbor, Zambia who is expecting a bad crop yield due to drought.
Increased maize trading was reported at Busia Uganda/Kenya border post at the close of the month of June because most Ugandan traders released their old stock to market. The arrival of newly harvested maize grain at Busia sent maize price declining especially for the old stock maize to Ugx.748/kg (Ksh.26) from Ugx.849/kg (Ksh.29) in a week’s time. It can only get cheaper in order to absorb all this stock pile of grain from last years’ huge harvest.
The estimated maize grain production in the opening season is usually low compared to the second one and this year much less grain is expected due to low market prices offered in the previous season and the erratic rainfall distribution received.
A high maize market price is speculated in September/October when all the first seasonal crop would be sold off. Tanzania traders could earn a good margin depending, between Uganda or Zambia.
Farmgain Africa.