ADDIS ABABA – The Ethiopian Commodity Exchange (ECX) will restart wheat trading on its floor this year, its officials announced on Thursday.
The ECX began operation trading corn and wheat on its trading platform fifteen years ago. The Exchange, however, decided to drop wheat from the platform a few months into starting its operation due to insufficient supply.
Following an increase in production in recent years, Ethiopia is now gearing up to begin exporting wheat to neighboring markets such as Kenya and Djibouti.
Likewise, the Ethiopian Commodity Exchange said it will also resume trading the crop on its trading platform this year. The ECX currently trades 17 products on its floor.
The Exchange prepared a draft Wheat Trading Contract which it said was key to ensuring farmers benefit from their trading and support Ethiopia’s export plan.
Prepared as per the variety and places of major wheat-producing areas, the draft trading contract proposes delivery sites and defines a grade for each variety.
The final draft was a subject of a consultative meeting between the ECX and a panel of experts on Oct 10, last week.
Today, ECX’s Officials have also held a similar discussion on the document with exporters, producers, flour factory owners as well as officials from federal and regional trade and agriculture offices.
The ECX said it will incorporate “important inputs” gained from both discussions into the final draft contract and present the document to its board of directors for approval.
The trading at the ECX platform will begin after the draft contract gets approved by regulators at the Ministry of Trade and Regional Integration, the Exchange announced on Thursday.
Ethiopia’s annual wheat harvest – from both the main Meher season and irrigation-based summer cultivation this year – is estimated to reach 152 million quintals.
The harvest is expected to help Ethiopia meet its 107mln quintals annual demand and save $600 million in spending, as well as launch its plan to begin export this year.
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