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STS HandbookThe Eastern Africa Grain Council (EAGC) and the Technical Center for Agriculture and Rural Cooperation (CTA) launched the Second Edition of the Structured Trading Systems (STS) Handbook this month at the 5th African Grain Trade Summit in Mombasa, Kenya. 

 The describes how structured trading systems work for grains such as maize, sorghum and millet, as well as commodities such as groundnuts and soybeans, Africa’s most important staples. Structured trading is a way of organizing, regulating and financing trade in a commodity. The grain is graded according to a set of agreed standards, and it is stored safely in a trusted warehouse. These two things make it possible for the owner to use the grain as collateral for a loan before it is sold. Moreover, the grain can be sold without having to move it out of the warehouse. And it can be traded on a commodity exchange, where buyers and sellers can agree on a deal without having to physically inspect the grain.

Structured trading is how most grain is traded in the developed world, and is now expanding in Africa. This manual explains how the system works, from postharvest handling and warehousing to trading on a commodity exchange. It describes the mysteries of standards, explains how market information is used, and explores the details of trade contracts and dispute resolution.

Congratulations to the EAGC and CTA for their great work!

 

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