ZIMBABWE’S grain and oilseed markets remain under pressure from tightening supplies, with demand for key commodities such as maize and soya beans continuing to outstrip available stocks, according to the latest market update from the Zimbabwe Mercantile Exchange (ZMX).
The supply-demand imbalance is sustaining firm prices for staple grains and oilseeds despite increased harvesting activity and improved deliveries into formal markets. Market participants expect maize and soya bean prices to remain supported in the near term as millers, processors and stockfeed manufacturers compete for limited supplies, while wheat prices could face downward pressure due to excess stocks.
The exchange reported that maize prices remained largely stable during the latest trading period, edging up by 0,03% to US$348,60 per metric tonne (MT), reflecting a market that remains relatively balanced despite persistent supply constraints.
In its latest bulletin, ZMX said maize prices remained slightly above the current import parity estimate of US$337 per tonne, indicating that strong domestic demand continues to support 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.
However, the exchange noted that market fundamentals continue to point to tightening grain supplies, particularly in the maize sector.
Demand for white maize reached 6 500 tonnes against available supply of only 2 000 tonnes, while yellow maize recorded an even wider imbalance, with demand of 3 120 tonnes compared to available stocks of just 360 tonnes.
The mismatch between supply and demand has helped to maintain firm prices in the maize market, with white maize sellers offering grain at between US$345 and US$350 per tonne, closely matching buyer bids of up to US$350 per tonne.
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“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,” ZMX said.
A similar trend is evident on the oilseed market, where demand for soya beans stands at 4 000 tonnes against available supply of only 500 tonnes. Sellers are 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, the wheat market is experiencing excess supply, with available stocks totalling 2 000 tonnes against demand of just 1 000 tonnes. ZMX said the wide gap between sellers seeking US$525 per tonne and buyers offering between US$440 and US$470 per tonne could place downward pressure on prices unless demand strengthens.
The exchange said the overall market picture reflected strong demand from millers, processors and stockfeed manufacturers, particularly for staple grains and oilseeds.
Regionally, Zimbabwe continues to trade maize at a premium compared to several major African commodity exchanges. Although maize prices on ZMX have moderated from about US$355 per tonne to US$348 per tonne over the past month due to increased harvesting activity and improved deliveries into formal markets, they remain significantly higher than prices in neighbouring countries.
South Africa remains the continent’s lowest-priced maize market at around US$194 per tonne, while other markets, including Zambia, Malawi, Tanzania, Mozambique and Nigeria, are trading between US$217 per tonne and US$328 per tonne.
