AHCX Maize Contract
Maize shall be deemed to comply with this standard if upon inspection and grading the provision in the below clauses are satisfied. Maize which does not meet the requirements of the below clause is considered as substandard and cannot be accepted to be stored at AHCX warehouses.
- Contract classification and delivery centers
|Maize Type||Delivery Location||Symbol||Grade|
- Packaging and Sampling procedures
|Packaging||Each grade of maize shall be packed in clean and sound 50 kg capacity polypropylene (PP) bags used no more than once prior to deposit.Â Delivery will be effective on Net Weight basis, which implies that weighing of Maize will be done on exclusive of bags basis and no additional payment will be given for the cost of bag.|
|Sampling and analysis at time of deposit||Conduct sampling and analysis using AHCX standards|
|Sampling and analysis at time of delivery||Conduct sampling and analysis using AHCX standards at request and cost of the client.|
|Sampling procedure||Sampling procedure based on AHCX standards
3 samples taken, one stored till clearing and settlement is complete.
|Failing of sample||Owner of the commodity has the right to request an appeal of the sample and/or grade:
- to the Warehouse Manager/Supervisor for the first failure
- to the AHCX Quality Manager for the second failure
|Dispute settlement||If agreement is not reached on first two analyses, A third party superintendent will be the final arbitrator at a cost of the appealing client.|
- Grading Parameters
|Parameters||Grade 1||Grade 2||Grade 3|
|Test Mass kg/hl. % min.||72.0||69.0||66.0|
|Moisture content||Less than 12.5%||13.01 to 14.00%||14.01 to 16.00%|
|Total Impurities, max % by weight||11.0||16||20.5|
|Under developed & broken kernels, max % by weight||3.5||4.5||5.5|
|Foreign matter, max % by weight||1.0||1.5||2.0|
|Damage, max % by Weight||4.0||6.0||8.0|
|Other grains, max % by weight||0.5||1.0||1.0|
|Contrasting Color, max % by weight||2.0||3.0||4.0|
- Trading terms
3mt net weightTolerance limit: 4%
|Maximum order size (In 3mt increments)||Maximum order size represents the maximum number of contracts that a Member may transact in a single transaction
20 contracts or 60 MT
(minimum price movement)
|Minimum price increment or decrement that price may be quoted:
0.5 Malawi Kwacha
|Daily Position Limit||The Daily Position Limit is the total quantity a member or a client is allowed to buy or sell during a trading session.
1000mt for members
200mt for clients
|Daily price limits||The daily price limit is the maximum percentage range, relative to the previous day’s closing price, outside of which offer and bid prices may not fall or rise.Â AHCX may change these limits from time to time, on a pre-announced basis.
Maize:Â 5 %
|Warehouse Receipt||All transactions must be based on AHCX Warehouse Receipt, indicating that commodities are in deposit in an AHCX warehouse prior to trade.|
|Contract quote basis||All prices will be quoted “Ex- Warehouse”, exclusive of taxes, fees and charges.|
|Quotation Factor||Prices are represented in Malawi Kwacha per Kg|
|Trading session||Monday through Friday, with the exception of public holidays.|
- Standard settlement terms
|Pay-in of Funds||On trade date (T)|
|Pay-out of Funds
(Time when funds will be deposited into seller member pay-out account)
|Next working day (T+1)|
|Weight Tolerance Adjustment||The tolerance for difference between exact weight recorded and the contract standard weight is adjusted at settlement|
|Exchange transaction fee||1% to buyer & Seller|
|Clearing fees||1% to buyer & Seller|
|Handling and Product Certification fee||Sampling and grading Seller: Mwk 3500
weighting, loading and unloading fees- Seller- Mwk 4000
|Warehouse Storage charge||Mwk 30 per Mt per Day|
|AHCX Warehouse Locations||Delivery locations will be Lilongwe, Mponela, Kasungu, Mzuzu, Limbe, Balaka.|
(Warehouse pick-up instructions will be delivered to the Member representing the buyer)
|By next working day after the trade day|
|Handover Instruction||After Delivery Intention is issued but before trade plus One (T+1) calendar days.|
(Number of days the buyer will have to pick up the lots from the warehouse without paying additional charges)
|Trade plus Five (T+5) calendar days|
|Failure to Pick up||Buyer is responsible for making arrangement to pick up commodity within the delivery period (T+5).Â There will be a 1% charge per day of the value of the trade if buyer fails to pick up goods from warehouse after the allotted time.
|Extension of Delivery Period||As per the Exchange decision due to a force majeure.|
- Standard Delivery terms
- General Definitions
- Moisture content: expressed on a wet weight bases, shall be determined using an approved moisture meter.
- Impurities: The sum of the damaged maize, broken kernels, foreign matter and other grains.
- Under developed & broken Kernels: Maize and pieces of maize that pass through 4.5mmÂ round hole sieve and remains on top of a 2.38mmÂ sieve
- Foreign Matter: All matter except other grains that pass through a 2.38mm round hole sieve and all matter other than maize remaining on top of the 4.5mm and 2.38mm sieve after sieving.
- Damage: A piece of maize that are; Germ damage, Heat damaged, Mold damaged, Stained grains, Discolored grains, Diseased grains, Sprouted grains, Immature grains, Insect damaged, Otherwise damaged
- Good Natural Colour: The natural appearance of the grain, which is pure and has not been affected by natural or man-made factors.
- Objectionable smell: Unpleasant smell that is caused by weathering, chemical contamination, mould infection, disease or damage caused by insect.
- Other Grains: Grains, whole or broken, other than grain under consideration.
- Test Mass: A measure of grain density determined by weighing a known volume of grain and expressed as Kilogram per Hectoliter.
- Mixed Maize: Mixture of different natural colors of maize grain.
- Immature grains: Grains or pieces of grains that are not fully developed.
- Heat Damaged: Grains or pieces of grains of maize which have been materially damaged by spontaneous heat or as a result of heat caused by fermentation.
- Contrasting Color: Maize kernels that have a seed coat color that is different from the predominant kernel color.
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