First maize harvest season opened.

June 25, 2018

The first maize season harvest has delivered grain from farmers who planted early. Usually Busoga region delivers maize first, however, this time round, the market received grain from other parts of the country simultaneously. It was offered in Busoga region at Ugx.470/kg, Kiboga-Kyankwanzi at Ugx.300-400kg, Hoima, Mubende, Mityana and other central region districts. This supply has influenced the old stock price low to Ugx.600/kg in Iganga. In Mbarara, it cost Ugx.500/kg and Kamwenge-Mubende at Ugx.500-600/kg.

A lot remains to be desired because the market price didn’t get to the presumed high price traders expected to register a profit. Many claim to have bought maize between Ugx.600-800/kg back then at the start of the final season last year and needed the prevailing market price at Ugx.900-1000/kg to register a profit margin. This means losses to the traders as the grain market struggles to get to the ceiling before the actual opening of the new season.

In Kampala market, maize was bought at Ugx.710/kg after 3-4 weeks of stable grain price at Ugx.680/kg indicating the final stage of the last 2017 season. Speculators have not given up their hope for achieving the highest price for their grain and are holding on to their maize but on a general outlook the volume of maize with stockiest has declined. Maize price is forecasted to register its highest at Ugx.720-750/kg this June, 2018.

Rwandese traders in Kamwenge sold back some of the maize to traders from Kampala at Ugx.600/kg. Aponye Uganda bought maize and beans at Kyaazanga.

Given the past trend, a number of farmers are expected to give up cultivating maize after having registered 4 seasons of low grain prices. That will likely be a bad decision because it will reduce the yield and given the effects of above normal rains and floods in several locations this year, the grain price will increase in season B of 2018.

Good groundnut supply was received in Kampala and Mbarara markets especially in Owino market, rendering the market price lower compared to the previous week’s price.   A kilo of groundnuts was purchased at Ugx.2600-3000/kg. In Mbarara plenty of groundnuts were received and harvested from Isingiro, Kihuura and Masaka. A kilo was offered at Ugx.2800-3000/kg wholesale price.  Some supply of groundnuts was delivered from Congo via Bwera at Ugx.2700/kg at wholesale level.

Plenty of sorghum was offered on the market in Gulu, Lira and Kampala. In Owino Kampala, a kilo of sorghum was offered at Ugx.350/kg while in Gulu and Lira at Ugx.300/kg and Ugx.330/kg wholesale respectively.

Farmgain Africa

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