Nigerians are changing eating habits as tomato crisis persists

Proshare

Friday, May 27, 2016 10:30AM /fdc

As the tomato crisis and its prohibitive price of N45,000 per basket persists, Nigerians are radically changing their eating habits and tastes to more of fried rice and coconut price.

The naira has traded flat at N350 in the forex market and oil crossed $50pb today for a brief period.

In the attached commodity report, these and some other key events have been reviewed for your reading pleasure.

Domestic Commodity Prices


 
Domestic commodities price spike continues

·         Staple food prices rising in response to currency market uncertainty

·         Marketers are short on U.S dollars

·         This could stoke inflationary pressures

·         Diesel price spikes 13.8% to N165/litre on supply unavailability


Tomato Crisis in Nigeria – Culled from BBC

·         Tomato prices still on the upward trajectory, trading between N45,000 – N48,000 per basket

·         A tomato pest called ‘Tuta Absoluta’ has destroyed approximately 80% of tomato farms

·         Could affect other food items like pepper & potato

·         200 farmers have lost N1bn in the past 1 month

·         Government official are taking drastic steps to stop pest spread

·         Kaduna, the largest producing state has declared a state of emergency and has spread across to 5 other states

·         Dangote has suspended tomato puree production

·         Consumers are now forced to switch to substitutes

  

Stock Market

·         Stock market closed higher at 3.78% to 28,260.61 pts

·         Positive sentiment from the outcome of the MPC

·         Prices higher, daily turnover jumps

·         Forward contracts of naira up to N290/$




Oil Price Movement

·         Brent crude 3.07% to $50.74pb

·         First time in 6 months crossing the $50pb mark

·         WTI 2.61% to $49.89pb

·         U.S crude stockpiles declining

·         Nigeria is restoring some lost production

  

Oil Markets today


Agric Commodities



Outlook

Oil

·         OPEC June 2nd meeting likely to maintain status quo

·         Internal squabbles will prevent an output cut

·         Oil prices to remain within the $45pb- $50pb pending the outcome of the OPEC meeting


Grains

·         Increasing demand and weather uncertainty will be bullish for grain futures


Soft

·         Sugar – Industry experts (ISMA) predict Indian sugar production will decline by 11.7% to 25 million tons

·         Cocoa – We expect prices to hover around $2,900/mt- $3,000/mt  Supply constraints in major growing area to boost prices
 

Related NEWS

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

2.      Nigeria records modest growth in food and accommodation sector

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

4.      Domestic Prices Remain Sticky Downwards

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

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

7.      Commodity Update: Prices Remain Stable

8.     Commodity: Domestic Prices Sticky Downwards

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