Wheat records first ZMX trade at US$400/tonne

Published: 30 September 2025

Wheat has recorded its first trade on the Zimbabwe Mercantile Exchange (ZMX) weekly auction floor, with the crop fetching an average price of US$400 per tonne as harvesting of the 2025 crop begins.

According to the latest ZMX weekly bulletin, farmers placed 1 000 tonnes of wheat on offer, while buyers expressed demand for half that amount. The inaugural trading session closed with wheat being sold at US$400 per tonne, representing a 6,9 percent decline from the previous price of US$430. ZMX attributed the drop to increasing supply as deliveries to the market rise.

Regional comparisons show Zimbabwe's wheat pricing remains competitive. Wheat is trading at an average of US$680 per tonne in Tanzania and US$538,40 in Zambia, while the Johannesburg Stock Exchange (JSE) is pegged at US$353,70 per tonne. On the Nigeria Commodity Exchange (NCX), wheat is going for US$435,54 per tonne. ZMX noted that Zimbabwe's import parity price stood at US$454 per tonne, slightly higher than local levels.

The liberalisation of wheat and barley trading in 2023 through Statutory Instrument 130 [CAP. 18.14] created space for self-financed farmers to sell directly to certified warehouses under ZMX, the Grain Marketing Board (GMB), processors, or registered contractors.

Lands, Agriculture, Fisheries, Water and Rural Development Minister, Dr Anxious Masuka, revealed that wheat farmers had surpassed their planting target of 120 000 hectares, reaching 121 449ha this season. He said the country expected to harvest more than 600 000 tonnes, provided farmers adhered to good agronomic practices.

Announcing the marketing and pricing framework for the 2024/25 season, Minister Masuka said crop sales would follow models under the Presidential Input Scheme (Pfumvudza/Intwasa), self-financed production, private contractors, the Agricultural and Rural Development Authority (ARDA), and the National Enhanced Agriculture Productivity Scheme (NEAPS) supported by financial institutions such as the Agricultural Finance Corporation (AFC), Commercial Bank of Zimbabwe (CBZ) and NMB.

"GMB will purchase all strategic commodities financed under the Presidential Input Scheme and will act as the buyer of last resort," Minister Masuka said. He added that contractors, including the Food Crop Contractors Association (FCCA), AFC, CBZ and NMB, were required to buy back contracted crops at prevailing market prices.

He noted that self-financed farmers would be free to sell on the open market or to GMB, which would continue to offer warehouse receipt services. "The Zimbabwe Mercantile Exchange will provide a central warehouse receipt system and a spot market trading platform for agricultural commodities," he said.

Meanwhile, GMB announced that premium grade wheat will be bought at US$461,35 per tonne, while utility and standard grade will fetch US$451,35 per tonne. The incentive planting price had been set at US$451,35 per tonne at the start of the season.

Zimbabwe has remained wheat self-sufficient since 2022. National demand stands at 360 000 tonnes annually, with production exceeding that threshold in recent years - 380 000 tonnes in 2022, 467 905 tonnes in 2023, and 563 961 tonnes last year. The focus has now shifted towards consolidating quality and boosting productivity in the wheat sector.
- The Herald

Tags: Wheat,