Zimbabwe Grain Auction Postponed as Maize Price Rises to US$348

The Zimbabwe Mercantile Exchange (ZMX) has postponed its weekly grain auction until next Wednesday due to insufficient time for operational preparations following this week's holidays. The decision comes as the average maize price rose 5 percent to US$348 per tonne from US$332 previously.

According to ZMX, market activity remained subdued in the last trade, with demand of just 500 tonnes against more than 2,000 tonnes offered on the auction, reflecting weak buyer participation and ample supply. The price gap in the maize market persisted, with buyers and sellers continuing to trade at different price expectations, limiting transaction volumes.

ZMX noted that white maize and wheat remain adequately supplied, with available volumes of 2,000 and 5,000 tonnes respectively, exceeding current buyer demand. However, soya and sugar beans are characterised by strong buyer demand against limited or non-existent market supply, reflecting tightening availability that is expected to keep prices firm.

The premium offered by buyers for sugar beans further signals a willingness to pay higher prices to secure available stocks. ZMX said these market conditions point to reduced liquidity outside the major grain and oilseed markets, delaying price discovery and limiting trade execution.