Domestic Commodity Prices Remain Fairly Stable


Tuesday, June 81, 2016 5:45PM / fdc

Domestic commodity prices have remained fairly stable this week while the naira has depreciated in the parallel market to N350/$.

Summer season demand coupled with thinning forex liquidity is crippling the renewed strength of the naira.

The good news is that the forwards and futures markets have been launched. Although the market remains inactive in the short term, it is expected that the market will soon find equilibrium.

The attached/below report is a synopsis of the commodity markets for this week

Domestic Commodity Prices 

Commodity Prices

•Domestic commodity prices stable this week

•Naira trading at N281/$ - Interbank

•Depreciated in parallel market to N350/$

•Commodity supply shocks fading and availability improving

•Diesel price at N175/180 per liter

•Forex futures market relatively inactive

Stock Market – Sharply Lower
·         Widespread selling on negative sentiment
·         Liquidity squeeze force banks to discount window

Oil Price Movement Slides
·         Brent crude down 2.58% to $47.16pb
·         WTI down 2.75% to $46.33pb
·         Brexit sends GBP and Euro to record year lows
·         Dollar strengthened by 1.2%
·         Flight to safety: gold and US$

Oil Markets today


•U.S stock market tumbles

•Commodity prices down on Brexit negative sentiment

•OECD nations coordinating to stop further slide


• Grain futures responding to favourable supply forecast

• 2016/17 global grain production will exceed 2 billion tons


Sugar – Futures trending upwards

•Global supply deficit at 3 – 4 million tons

Cocoa – Prices will decline on favourable main crop expectation

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