Favourable Weather Conditions to Depress Wheat Prices

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Wednesday, June 10, 2020 / 10:18 AM / FDC / Header Image Credit: FDC

 

Many analysts expected domestic commodity prices to fall back to normal as the lockdown was partially relaxed. In reality, prices have continued to climb because of a combination of factors including the supply disruptions caused by checkpoints, bottlenecks and fear of infection.


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There has also been a phenomenon of pricing differential between elitist and sub-urban markets. For example, a bag of garri in Sura is 5%-10% higher than Oyingbo. Increased logistics cost has resulted in steeper prices in markets that are farther from the production source.

 

This is likely to result in a spike in the headline inflation rate for May (above 12.5%) scheduled to be released next week.

 

In the slides below, the FDC Think Tank discussed these and other burning issues on Channels TV Business Morning programme. 


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