Commodities | |
Commodities | |
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PROSHARE | |
PROSHARE |
Prices on the Exchange witnessed a lull as the AFEX Commodities Index
(ACI) dropped by -0.39% over the period. The commodities covered by the Index
remained neutral in the month under review. This was influenced partly by the
lockdown measures, which were put in place by the Government to combat the
COVID-19 pandemic near the end of March.
The open market indicative prices tightened
considerably and were greatly influenced by the crop cycle in the agrarian
North which indicated a gradual depletion of market stocks in March, thereby
narrowing supplies as the markets inch closer to the lean season for
commodities. The month-average executed prices in the Open market were higher
than the Exchange Prices for maize, soybeans and paddy rice.
Market
activity in March for maize, soybeans and paddy rice was characterized by a
marked increase in price volatility in addition to a price decline for maize
and soybeans on the exchange and international markets. Physical market
indicative prices tightened considerably and were greatly influenced by the
crop cycle in the agrarian north which indicate gradual depletion of market
stocks in March, thereby narrowing market supply. On the other hand, paddy rice
prices on the exchange remained neutral M-o-M while other prices eased in
addition to experiencing increased price volatility indicating gradual
depletion of market stocks and supplies as the markets inch closer to the lean
season for commodities.
The
domestic commodity markets have also witnessed some impacts following the
outbreak of COVID-19 and the subsequent lockdown instructions being implemented
across the country. The impact of the virus outbreak has been reflected in the
suspension of procurement by industries consuming the commodities as they evaluate
the demand levels and seek alternative supply and distribution networks for
their products.
AFEX
Executed prices for the month under review were generally lower than the
physical markets for comparative commodity grades offered on the exchange.
International Markets
In the international Market, maize and soybeans prices eased in March,
being most pronounced for maize as the commodity experienced a price decline of
-3.0% due to seasonal pressures. Global supply chains are however at risk of
disruption from the current global pandemic of COVID-19 which has its epicenter
situated in Southeast Asia a major food-producing hub.
Composite Index
The AFEX Commodities Index Composite opened at 161.4 points and had a
month average value of 160.0points, a negative M-o-M performance against
February 2020 to close at 162.3 points at the end of the month. The
season-to-date' performance of the ACI Composite at the last trading day of the
month was negative, closing 9.77 points below the index opening at the
beginning of the season.
The year-on-year (seasonality) performance experienced -13.4points
(-7.7%} difference against March, 2019; indicating a decrease from last year's
prices.
Maize
The Maize Sub-Index opened at 178.8
points, and had a month average performance of 179.1 points, representing a
negative performance of the sub-Index against February 2020 and closed at a
value of 180.6 points.
The sub-index recorded a negative season-to-date
performance on the last trading day of the month closing -7.4 points (-4.0%)
below the February index opening while the year-on-year performance experienced
a 1.8% increase against March 2019.
Soybean
The Soybeans Sub-Index opened at 178.9 points, and had a month average performance of 174.5 points, representing a negative performance M-o-M for the sub-Index. It closed with a value of 178.9points. It recorded a negative season-to-date performance on the last trading day of the month closing 15.1% below the December opening of the index. The year-on-year performance experienced a -39.3points (-18.4%) decline against March, 2019.
Paddy Rice
The Paddy Rice Sub-Index opened at 136.3 points and had a month average
value of 136.3 points, representing a M-o-M neutral performance to close at
136.3 points at the end of the month. The sub-index recorded a positive
season-to-date performance on the last trading day of the month closing 5.9
points (4.5%) above the sub-index opening at the start of the season while the
year-on-year performance experienced a 5.1% increase against March 2019.
1.
Stockpiling
of Staples to Keep Domestic Commodities Prices High
2.
COVID-19
Induced Lull Continues - AFEX Commodities Weekly Report 090420
3.
AFEX
Partners Proshare on a Webinar on the Impact of COVID-19 on Nigeria's Food
Systems
4.
Markets
Witness COVID-19 Induced Lull - AFEX Commodities Weekly Report 020420
5.
Increased
Consumer Demand For Grains During The Global Lockdown To Push Up Prices
6.
ACI
Experiences An Uptick - AFEX Commodities Weekly Report 260320
7.
Sugar
Prices to Rise in the Coming Weeks as Ethanol Refiners Switch to Sanitizers
8.
Nigeria
Should Strengthen Its Warehousing Capabilities, To Boost Its Commodities
Exchanges
9.
Price
Volatility Ramped up Significantly in the Exchange and Domestic Market - AFEX
Monthly Report
10. ACI Surges By 5.06% - AFEX Commodities Weekly Report
060320
11. Cocoa
Prices Gained; Driven By Shortage in Supply
12. Grain
Prices Are Expected to Remain Low as Chinese Demand Slow
13. Open
Market Prices Take a bullish Turn - AFEX Commodities Weekly Report 210220
14. Brent
Likely to Trade Around $59-$61pb in the Coming Days
15. Falling
Demand for Wheat and Corn to Taper Prices in the Coming Days
16. Commodities
Markets Take Bearish Turn As Traders Contemplate Coronavirus
17.
Export
Crops Maintaining Gains in Price - AFEX Commodities Weekly Report 140220
18. Cocoa
Prices Up As Adverse Weather Conditions Limit Global Output
19. Export
Crops face Bullish Trend- AFEX Commodities Weekly Report 060220
20. Declining
Demand for Grains to Depress Prices in the Near Term
21. Global
Commodity Markets Calm After a Very Choppy Day
22. Commodities
Prices Maintain Steady Sail - AFEX Commodities Weekly Report 230120