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
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.
to the EAGC and CTA for their great work!