Commodity exchanges and warehouse receipts in Malawi: Current status and their implications for the development of structured markets

This study examines the landscape in which Malawi’s two agricultural commodity exchanges (Comex) and warehouse receipts systems (WRS) operate and makes recommendations on how to improve their performance and benefits to key stakeholders. A mixed methods approach was adopted, involving semi-structure...

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Autores principales: Baulch, Bob, Gross, Adam, Nkhoma, Justice Chimgonda, Mtemwa, Chikumbutso
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2018
Materias:
Acceso en línea:https://hdl.handle.net/10568/146606
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author Baulch, Bob
Gross, Adam
Nkhoma, Justice Chimgonda
Mtemwa, Chikumbutso
author_browse Baulch, Bob
Gross, Adam
Mtemwa, Chikumbutso
Nkhoma, Justice Chimgonda
author_facet Baulch, Bob
Gross, Adam
Nkhoma, Justice Chimgonda
Mtemwa, Chikumbutso
author_sort Baulch, Bob
collection Repository of Agricultural Research Outputs (CGSpace)
description This study examines the landscape in which Malawi’s two agricultural commodity exchanges (Comex) and warehouse receipts systems (WRS) operate and makes recommendations on how to improve their performance and benefits to key stakeholders. A mixed methods approach was adopted, involving semi-structured interviews with key market participants, compilation and analysis of secondary data from Malawi and other African Comex, and a review of existing literature. A review of international experience indicates that historically Comex often develop hand-in-hand with warehouse receipt systems (WRS), which help stimulate demand from off takers for standardized contracts while providing financing that increased volumes traded. In recent years, electronic trading platforms have given an impetus to the consolidation of existing Comex, and the development of regional networks of exchanges and warehousing arrangements. Nonetheless, a common reason why Comex fail is that they do no attract sufficient trading volumes to pay for their operating costs. This is often associated with default on contracts and fears of the market for commodities being cornered by a few larger traders. Of the 23 Comex in Africa, over half are still in their planning or inception stages and, with the notable exception of the agricultural futures and options traded on the Johannesburg Stock Exchange, most of the remaining Comex are thinly traded and receive financial support from government and/or donors.
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spelling CGSpace1466062025-11-06T05:04:46Z Commodity exchanges and warehouse receipts in Malawi: Current status and their implications for the development of structured markets Baulch, Bob Gross, Adam Nkhoma, Justice Chimgonda Mtemwa, Chikumbutso storehouses agricultural policies markets commodity markets This study examines the landscape in which Malawi’s two agricultural commodity exchanges (Comex) and warehouse receipts systems (WRS) operate and makes recommendations on how to improve their performance and benefits to key stakeholders. A mixed methods approach was adopted, involving semi-structured interviews with key market participants, compilation and analysis of secondary data from Malawi and other African Comex, and a review of existing literature. A review of international experience indicates that historically Comex often develop hand-in-hand with warehouse receipt systems (WRS), which help stimulate demand from off takers for standardized contracts while providing financing that increased volumes traded. In recent years, electronic trading platforms have given an impetus to the consolidation of existing Comex, and the development of regional networks of exchanges and warehousing arrangements. Nonetheless, a common reason why Comex fail is that they do no attract sufficient trading volumes to pay for their operating costs. This is often associated with default on contracts and fears of the market for commodities being cornered by a few larger traders. Of the 23 Comex in Africa, over half are still in their planning or inception stages and, with the notable exception of the agricultural futures and options traded on the Johannesburg Stock Exchange, most of the remaining Comex are thinly traded and receive financial support from government and/or donors. 2018-11-08 2024-06-21T09:07:44Z 2024-06-21T09:07:44Z Working Paper https://hdl.handle.net/10568/146606 en https://doi.org/10.2499/p15738coll2.133159 Open Access application/pdf International Food Policy Research Institute Baulch, Bob; Gross, Adam; Nkhoma, Justice Chimgonda; and Mtemwa, Chikumbutso. 2018. Commodity exchanges and warehouse receipts in Malawi: Current status and their implications for the development of structured markets. MaSSP Working Paper 24. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/146606
spellingShingle storehouses
agricultural policies
markets
commodity markets
Baulch, Bob
Gross, Adam
Nkhoma, Justice Chimgonda
Mtemwa, Chikumbutso
Commodity exchanges and warehouse receipts in Malawi: Current status and their implications for the development of structured markets
title Commodity exchanges and warehouse receipts in Malawi: Current status and their implications for the development of structured markets
title_full Commodity exchanges and warehouse receipts in Malawi: Current status and their implications for the development of structured markets
title_fullStr Commodity exchanges and warehouse receipts in Malawi: Current status and their implications for the development of structured markets
title_full_unstemmed Commodity exchanges and warehouse receipts in Malawi: Current status and their implications for the development of structured markets
title_short Commodity exchanges and warehouse receipts in Malawi: Current status and their implications for the development of structured markets
title_sort commodity exchanges and warehouse receipts in malawi current status and their implications for the development of structured markets
topic storehouses
agricultural policies
markets
commodity markets
url https://hdl.handle.net/10568/146606
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AT grossadam commodityexchangesandwarehousereceiptsinmalawicurrentstatusandtheirimplicationsforthedevelopmentofstructuredmarkets
AT nkhomajusticechimgonda commodityexchangesandwarehousereceiptsinmalawicurrentstatusandtheirimplicationsforthedevelopmentofstructuredmarkets
AT mtemwachikumbutso commodityexchangesandwarehousereceiptsinmalawicurrentstatusandtheirimplicationsforthedevelopmentofstructuredmarkets