Domestic Commodity Prices Declining in the Last 24hours - FDC

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Tuesday, June 21, 2016 4:05PM / fdc 

Domestic commodity prices have been declining in the last 24 hours in reaction to an appreciating naira in the new forex market. With replacement costs much lower than inventory value, there is room for a price war amongst retailers.

 

Tomatoes, Rice, Beans and Garri are all trending downwards

 

Attached/below is a synopsis of the commodity markets for the week


Commodity Prices Slump

•Price of rice crashes in Kano to N12,500

•Cement down to N1,600

•Tomatoes down to N30,000

•Diesel sharply higher to N200/liter

Stock Market

·         Stock market lost 1.63% to 28,769.90 pts

·         Naira scarcity and higher interest rate takes its toll

 

Oil Price Movement – Above $50 per barrel

• Brent crude 2.83% to $50.56pb

• WTI 2.90% to $49.37pb

• Likely Brexit failure affecting sentiments

• Dollar weakness driving oil price higher

• U.S rig count up 9 to 337 on market optimism

• OPEC’s production in May, down 100,000pd

 

Oil Markets today

 


·         Price movement good for Nigeria’s fiscal revenue

 

 

Outlook 

•Price volatility will persist as oil is sensitive to macro-political events

•Goldman Sachs anticipate average price at $56.50pb in H1’16

•As market slowly erodes supply glut to a steady rebalancing

•Outages and disruption in Nigeria, Venezuela, Algeria, Iraq and Libya will escalate prices

Grains 

• Large crop expectations pushing prices lower

Soft 

•Soft commodity prices will remain high

Sugar – India’s output to decline 10.9% to 25.2mt

•Price to trend higher

Cocoa – Higher crop failure continues to affect market, trading above $3,115 per ton

Related NEWS

1.       Nigerians are changing eating habits as tomato crisis persists

2.      Staple Food Prices on the Upward Trajectory as Consumer Demands Continues to Slow

3.      Nigeria records modest growth in food and accommodation sector

4.      Food price on the rise – Mile 12, Ikeja and Agege markets raise prices

5.      Domestic Prices Remain Sticky Downwards

6.      Oil Prices Fall by 2.87% as Oil Producers Fail to Reach an Output Agreement

7.      Oil Prices Increase by 20% to $44pb

8.     Commodity Update: Prices Remain Stable

9.      Commodity: Domestic Prices Sticky Downwards

 

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