Domestic Commodity Prices Have Reached Their Peak


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 

• Ample global supplies to weigh on prices

• Stronger greenback will weigh on demand for grains



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


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

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