AFEX has begun releasing a compiled daily report published once a week in the news print titled the AFEX ComX Report . It is a page that shares valuable data on the prices of featured agricultural commodities (maize, soybean, paddy rice, sorghum, cocoa and ginger) as well as a graph showing the daily movement on the AFEX Commodities Index (ACI). The page currently features on the Wednesday print of BusinessDay newspaper taking its rightful place among other relevant market reports because the commodities market in Nigeria is deservedly gaining strength as a viable, alternative investment class. Trading of commodities, in particular agricultural products, at the capital market puts the nation in a better position to transform the agricultural sector for overall economic growth in Nigeria.
Agriculture is considered Nigeria’s single largest economic sector. The sector has a potential to become Nigeria’s greatest asset if harnessed properly. The National Bureau of Statistics (NBS) said in its 2016 report that agriculture accounted for 24.4% of Gross Domestic Product (GDP) in the year. Still, the agricultural production landscape in Nigeria remains fragmented with revenue derived from the sector relatively small compared to its immense potential. Enabling more people access to invest in the sector will lead to greater productivity and yield, which will enrich all stakeholders involved and the economy as a whole.
AFEX’s Goal in Sharing Commodities Market Reports
AFEX aims to make investing in agricultural commodities accessible to all investors, and one big factor that would ensure this is the access to market prices and other relevant information that will enable all players in the value chain make informed decisions. The producing and investing public needs to have access to data on commodities, which will promote price discovery as well as transparency in transactions. The AFEX ComX Report will give parties access to qualitative information that will provide advantage as well as promote transparency in the commodities market, which will give producers greater influence in negotiating prices and strengthening their earning capacity. The ACI data, in particular, will enable current and potential traders on the exchange to follow the trends and hedge against risk.
AFEX is in the best position to provide this distilled data as we have developed a market data system that shows indicators for key drivers for commodity supply and demand, commodity prices across markets, and trend analysis.
Market Reports: Need for the AFEX ComX Report
After considering the immense potential of the commodities market in Nigeria, and AFEX’s goal in sharing commodities market reports, all that is left to consider are the uses that our AFEX ComX Report can be put to. Below we present three of the greatest benefits.
Both producers and buyers in the sub-Saharan commodities market, currently, operate on a bilateral basis that sees them completing deals in private transactions. This lead to a large information barrier that blocks either side from having a concise view on prices. Producers are worst hit by this lack of price discovery and are often exploited at the farm gate level on this basis. Through secondary and primary data research, the AFEX ComX Report is able to give an outlook on the price points of various commodities in the Nigerian market. This will work to create a structured market where competitiveness is maximized by the ability of all parties to readily access information on prices.
Identify Market Trends
The AFEX ComX Report distills a lot of data and information about the commodities market in Nigeria in its detailed page. This gives a whole picture view of the commodities market in Nigeria that can enable users to study trends in the market over time.
Validate leanings and make informed decisions
Connected to the point above, the goal of all market reports is to enable users to make informed decisions and the AFEX ComX Report is no different. As users read the page to get information about prices and study trends in the market, they are better able to make informed decisions on how to participate in the market. For the farmers/ producers, there is greater confidence in allotting prices to their produce and for traders, investors and other market participants, they can make purchase and investment decisions that are based on trusted research data.
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