Story by Stanley James, Business Editor
THE Zimbabwe Mercantile Exchange (ZMX) auction kicked off this Wednesday, with maize settling for a price of US$260 per tonne.
Data released after the conclusion of the first weekly online commodities auction this Wednesday, shows that there were total bids of 342 tonnes of maize at an average price of US$260, with a combined value of more thanUS$ 89 000
Sellers offered over 2000 tonnes of maize at an average price of over US$300 and a total value of more than US$690 000.
The statistics show that successful trades were for 93 tonnes for US$260, while unsuccessful bids stood at 2,250 tonnes.
The ZMX is a platform where buyers and sellers place their orders at their preferred prices, with the market determining the average price.
It is being operationalised after the government liberalised grain trading for contracted farmers.
However, farmers contracted by the government are only allowed to sell the grain and cereals to the Grain Marketing Board (GMB).
The agricultural commodities exchange is in line with the government’s thrust of opening up farming markets thereby facilitating price discovery, fairness and efficiency.
Other features of the newly established market include convenience as buyers and sellers access the auction from their offices, farms and homes as well as competitive rates as buyers and sellers get the best deal.
Having commenced with the weekly maize auction, the market is also expected to include over 10 commodities within its trading platforms with long-term plans of including horticulture and livestock.