Zimbabwe’s grain and oilseed markets remain under pressure from tightening supplies, with strong demand for maize and soya beans continuing to outstrip available stocks and support elevated prices, according to the latest market update from the Zimbabwe Mercantile Exchange (ZMX).
The exchange said persistent supply shortages, particularly in the maize and oilseed sectors, are sustaining firm prices despite increased harvesting activity and improved deliveries into formal markets.
Millers, stockfeed manufacturers and processors continue to compete for limited stocks, while the wheat market is showing signs of oversupply that could place downward pressure on prices.
According to ZMX, maize prices edged up marginally by 0.03 percent during the latest trading period to US$348.60 per metric tonne (MT), reflecting a market that remains relatively stable but constrained by limited supply.
The exchange noted that maize prices are trading slightly above the current import parity estimate of US$337 per tonne, suggesting that domestic demand remains strong enough to sustain local prices.
“Soya bean prices stood at US$551/MT, broadly in line with import parity levels of US$550/MT, while wheat traded at US$470/MT, below the import parity benchmark of US$488/MT, making local wheat more competitive against imported supplies,” ZMX said.
The exchange highlighted significant imbalances between supply and demand across several key commodities.
Demand for white maize currently stands at 6,500 tonnes compared to available supply of only 2,000 tonnes.
The situation is even more pronounced in the yellow maize market, where demand of 3,120 tonnes far exceeds available stocks of just 360 tonnes.
As a result, maize prices have remained firm, with sellers offering white maize at between US$345 and US$350 per tonne, while buyers are willing to pay as much as US$350 per tonne.
“The narrow price spread suggests strong market liquidity and indicates that maize prices are likely to remain supported in the near term as buyers compete for limited available stocks,” the exchange said.
The oilseed market is experiencing a similar trend.
Demand for soya beans has reached 4,000 tonnes against available supply of only 500 tonnes, highlighting a substantial shortage.
Sellers are currently offering soya beans at between US$555 and US$560 per tonne, while buyers are bidding between US$540 and US$550 per tonne.
In contrast, wheat is facing a surplus supply situation.
Available wheat stocks total 2,000 tonnes, double the current demand of 1,000 tonnes.
The exchange said this imbalance, coupled with a significant gap between seller expectations and buyer offers, may place downward pressure on wheat prices unless demand improves.
Sellers are seeking approximately US$525 per tonne for wheat, while buyers are offering between US$440 and US$470 per tonne.
Overall, ZMX said the market continues to be driven by robust demand from food processors, millers and stockfeed producers seeking raw materials for production.
Regionally, Zimbabwe’s maize prices remain among the highest on the continent despite recent moderation.
Prices on the local exchange have eased from approximately US$355 per tonne to US$348 per tonne over the past month as harvesting activity increased and more grain entered formal trading channels.
However, Zimbabwean maize continues to trade at a significant premium compared to several neighbouring markets.
South Africa remains the lowest-priced maize market in the region at approximately US$194 per tonne, while markets in Zambia, Malawi, Tanzania, Mozambique and Nigeria are trading within a range of US$217 to US$328 per tonne.
The latest market data suggests that unless grain deliveries improve significantly, strong demand and limited supplies are likely to keep maize and soya bean prices elevated in the short term, while wheat prices may face increasing pressure from excess stocks.
Source – Newsday
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