Online Auction Set to Commence on June 21, 2023, with Maize and Other Commodities to Follow
The Zimbabwe Mercantile Exchange (ZMX) has announced the launch of its Agricultural Commodities Auction, which is set to commence on Wednesday, June 21, 2023, from 8:00 am to 4:00 pm. The weekly auction will be conducted online every Wednesday thereafter, at the same time. The auction is in accordance with the ZMX Trading Rules gazetted in Statutory Instrument 184 of 2021 and will start with maize, eventually including all other commodities listed on the exchange.
The auction comes as an addition to the existing normal trading where orders are posted and matched continuously. With the auction, buy and sell orders are also posted continuously but matched at the end of the auction with one clearing price. The mechanics of the auction are designed to cater for as many buy and sell orders as possible, allowing buyers and sellers with similar needs to meet in the market at once.
The commencement of the auction follows the registration of buyers, sellers, traders, and contractors, as well as the issuance of warehouse receipts that has been ongoing. Registration of participants is still open. Interested participants who have not done so are required to register with both ZMX and the Agricultural Marketing Authority (AMA) as required by law. Once registered, farmers and contractors can deposit their commodity into ZMX certified warehouses and receive warehouse receipts that will be used for trading.