Maize price increases drastically.

October 16, 2018

A number of foreign grain traders were reported purchasing maize in different locations both in towns and the country side. In Kampala some Sudanese traders were reported buying both maize grain and maize flour. The maize market price quickly increased from Ugx.450/kg to Ugx.550-570/kg depending on the foreign traders buying point. The maize flour price which had dropped to Ugx.45,000 a bag of 50kgs also increased to Ugx50,000. Maize bran also registered a slight increment effectively last week.

The maize market price in Kampala declined back to Ugx.540/kg on Sunday 14th October, 2018 as supply increased.

In the western region, Rwandese traders were reported purchasing maize at Ugx.530/kg and a lot of grain was ferried off to Rwamagana. Suddenly the buying price in Kigali declined and the volumes of grain demanded also declined. The traders buying price in Kamwenge and surrounding districts such as Mubende, Kyenjojo, Kibaale fell to Ugx.450-470/kg depending on quality of grain.

Trading for the Rwandese has since declined due to the sudden increase of the maize price at farm gate level. The grain price fell to Ugx.380/kg because of the large volume of grain held by different stakeholders. The traders have continued to load maize but at low pace. It takes about 3 days to load a 42MT trailers. It was noted that the volume of grain held by farmers had greatly depleted and whatever was still at large, was with the commercial traders.

It was also reported that Kigali –Rwanda was not the final destination for the maize. A lot of it was going via Kigali to Burundi and DRC where they hadn’t cultivated due to war. On average 10 trailers were loaded destined for Rwamagana.  Old stocked beans were offered at Ugx.1400-1450/kg wholesale. Mixed beans were cheaper at Ugx.1200/kg.

In the northern region, pockets of Sudanese traders bought maize grain at different locations. In Gulu they bought in small quantities at Ugx.500/kg. Sorghum was also bought at the same price. Lira reported low grain price at Ugx.400/kg. See spread sheet attached.

The large grain buyers continue to purchase for their contracts at the standing market price in different locations. Some organizations have indicated increased grain purchase for the United Nations – WFP. Other support organizations like USAID also stocked grain to carter for the vulnerable communities.

A lot of grain is held by traders speculating for better price and the grain price peak has been forecasted in Jan/Feb 2019.

The EAC regional market seems saturated with maize grain surplus. The Busia produce hub has reported slow grain trading with no demand from Kenya. The Kenyan market stepped up its grain purchase requirement slightly but the increment does not absorb Uganda’s surplus. Ugandan maize price was reported extremely low in 3rd quarter, lower than the Tanzania price.

Good quality maize was bought at Ksh.15/kg (Ugx.558) at Busia. An estimated 100-150MT of maize only were delivered daily through the previous week. Yellow beans were bought at Ksh.54/kg (Ugx.2008), Nambale at Ksh.49/kg (Ugx.1822), mixed beans at Ksh.40/kg (Ugx.1488).

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