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Domestic Commodity Prices Have Reached Their Peak

Proshare

Thursday, December 22, 2016 04:18 PM /FDC

Domestic commodity prices have reached their peak for the year and are expected to taper down in January.

Consumer goods such as Gala, the best indicator for the bottom of the pyramid consumer, have climbed 40%, while Indomie is likely to stay at N60 a pack.

Early signs of petrol shortage are emerging and world oil price retreated to $54pb.

The attached report summarises the commodity price movements for this week.

Burning Economic Issues

• Forex market could be overhauled in 2017 – Finance Minister   

• Naira slides further to N492/$ at the parallel market

• Arik air back in service

• Abuja Airport to be closed for 6 weeks

• Interswitch suspends US$1bn IPO on weak naira and dollar scarcity

Domestic Commodity Prices
•Diesel price is at N235/liter, highest level YTD

•Shopping mall traffic sharply lower in December 2016

•Consumer good prices stable but high

•Expecting to drop in January
 





Stock Market
• NSE ASI 0.46% (26, 418.11pts), closing negative for the third consecutive day

•Expected to maintain this trend until the New Year

•Bulls are on Holiday, Bears are licking their wounds

Oil Prices Surge
• Brent crude 0.84% to $54.46pb

• WTI 0.71% to $52.49pb

• Prices fell as US crude inventories increased, beating expectations

• Inventories increased by 2.3mb against expectations of 2.5mb build up

• Losses were curbed by the weaker dollar and optimism on output cuts

Oil Markets Today


Outlook – Oil Prices
• Drawdown in inventory levels positive for oil prices

• Market awaits data on US rig count which increased last week

• Gains may be reversed as Libya reopens two of its biggest oil fields

Outlook – Agric Prices 
Grains

• Ample global supplies to weigh on prices

• Stronger greenback will weigh on demand for grains

Soft

Sugar

• Global market expected to swing back into a surplus in 2017/18

Cocoa

• Global surplus widely expected for the current 2016/17 season

Related News
1.       Prices of Christmas Sensitive Staple Foods Remain Sticky Downwards
2.      Domestic Commodity Prices Oblivious to a Falling Naira
3.      Domestic Food Prices May Have Reached a Plateau as Consumer Resistance Bites Harder
4.      Retailers Brace up for a Bleak Christmas
5.      Militants Disrupt a Potential 400,000bpd from Forcados Export terminal; Food Prices Remain Flat
6.      Oil Price Slips on OPEC Deal Concerns; Price of a Bag of Rice is Tapering
7.      Rise in Crude Oil Price to Boost Nigeria’s Revenue by 8.7%
8.     Commodity Prices Remain Relatively Unchanged
9.      Domestic Commodity Prices Tick Upwards In Spite of Expected Harvests
10.  Naira Depreciates to N407/$ in the Parallel Market; Impact on Imported Commodities to be Felt in Sep
11.   Consumers Are Resisting Price Increases in the Retail Market - FDC
12.  Continuing Slide of the Naira Leading to Higher Prices of Inelastic Commodities
13.  Receding Weather Shocks Hand baton to Fundamentals
14.  Domestic Commodity Prices Remain Fairly Stable
15.   Potash Price Surge Could Lead To Higher Food Costs For Billions
16.  Domestic Commodity Prices Declining in the Last 24hours - FDC

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