The briefcase trader says it does not expect any significant change in market fundamentals until the end of February, when execution on the maize supply agreement among the Grain Traders Association of Zambia, Millers Association of Zambia and the Food Reserve Agency is complete.

The report said as the country enters the leanest last six-months of the maize marketing season since 2010, the  Food Reserve Agency  will be the entity with the most maize available to supply to millers and to over 2.3 million people who will be food insecure between January and May.

According to the report soft commodities have remained unchanged with Maize selling at K4, 455 per tonne, Soya bean at USD 450 per tonne, Soya meal is at USD 500 per tonne, and wheat is at USD 430 per tonne.
“Zimbabwe, the biggest importer of Zambian soya meal, is expected to have a recession while the Zambian economy is expected to grow at slow pace, dampening demand for animal protein and, in consequence, soya meal.” The report said

It said the demand on the Food Reserve Agency increases the likelihood of some millers, especially those based outside of Lusaka, Eastern and the Copperbelt at a high risk of shutting down operations until the next grain marketing season.
The reports further shows that Commercial soya bean forward contracts are expected to be signed between USD 380 and USD 400 per tonne delivered Lusaka.
According to the report the increased rainfall across the country increases the likelihood of dams filling in these provinces, and the country having an above average wheat crop.

“There is increased demand for wheat with export permits likely to be given in February-March.” The report said.