ECX Trade floor
BusinessNews

FAO Backs ECX’s Push to Reintroduce Wheat on its Trading Platform

ADDIS ABABA – The Ethiopian Commodity Exchange (ECX) said it has taken major steps in to relaunch wheat trading on its electronic trading platform with the support of UN’s Food and Agriculture Organization (FAO).

The UN agency backed the Exchange’s ongoing preparations with a $50,000 (2.5 million Birr) financial support availed by the the Italian Agency for Development Cooperation.

Wheat was one of the two products traded when the Commodity Exchange operating 15 years ago.

The crop, however, stayed on the trading platform for only a few months.

The Exchange decided to drop the crop from the platform due to insufficient supply.

Increased production over the past two farming seasons saw Ethiopia begin exporting wheat to the international market last week.

ECX has also stepped up its efforts to reincorporate the crop to ita modern electronic trading Platform.

“Besed on the national effort to enhance production and productivity, it is now back to the platform,” said the ECX im a statement on Wednesday.

Major activities have already been carried out to launch the trading of wheat, the Exchange said, appreciating FAO’s financial suppprt in the ongoing preparations.

The activities, it said, involve the contract development, stakeholders’ deliberation, awareness creation programs, producing educational and communication materials and more.

When wheat trading starts, farmers and suppliers can deposit the commodity at nearby warehouse of ECX’s 25 branches as well as sub-branches using the unions facilities.

Both farmers and suppliers benefited from the fast and reliable clearing and settlement system, and get real-time market information on wheat trade.

In addition, they are allowed to get short term loans using warehouse receipt financing system.

“Ethiopia Commodity Exchange extends its complement to the FAO for the support reincorporating wheat to trade on its trading platform,” said ECX.