Commodities update 03 may 2016
•
0 likes•198 views
The document lists current commodity prices in three Nigerian cities - Lagos, Kano, and Onitsha. It shows the prices of items like cement, cassava, maize, flour, sugar, rice, palm oil, beans, semovita, and pasta. Domestic commodity prices have remained stable. The document also discusses rice imports, the quality of local rice, herdsmen threatening food security, and stock market performance.
Recommended
Recommended
More Related Content
What's hot
What's hot (7)
Similar to Commodities update 03 may 2016
Similar to Commodities update 03 may 2016 (20)
More from Financial Derivatives Company Limited (FDC)
More from Financial Derivatives Company Limited (FDC) (20)
Recently uploaded
Recently uploaded (20)
Commodities update 03 may 2016
- 1. Commodity Current Prices LAGOS Current Prices KANO Current Prices ONITSHA Cement (50kg) N1,700 N1,800 N1,700 Cassava (Garri) (50kg) N15,000 N16,400 N15,400 Maize (50kg) N8,200 N8,000 N8,400 Flour (50kg) N8,800 N9,100 N9,000 Sugar (50kg) N9,000 N9,200 N9,250 Rice (50kg) N13,000 N13,500 N13,700 Palm Oil (30L) N9,600 N9,300 N9,000 Beans (50kg) N27,000 N27,200 N27,100 Semovita (10kg) N1,800 N1,900 N1,900 Pasta N2,600 N2,750 N2,700 Domestic Commodity Prices Stable
- 2. Domestic Prices 2 FOOD STORE •Domestic prices have remained sticky •USDA expects rice imports to fall by 500, 000 tonnes to 2.5 million tonnes in 2016 •Influenced by foreign exchange restrictions & current ban on importation of rice via land borders •Local rice considered to be of lower quality despite being more nutritive •Due to the inflated price of a bag of rice, USDA expects consumption to decline by 5% to 5.4mt in 2015/16
- 3. Domestic Prices 3 FOOD STORE •Herdsmen remain a threat to food security •Initially, herdsmen and farmers maintained symbiotic relationship •In time past, cattle served as a means of transport and source of manure to fertilize fields while herdsmen obtained grains for their cattle •However as farming activities expanded, conflict over grazing areas arose due to crop damage •This may stoke inflation in the months ahead
- 4. Stock Market Share Prices (N) W-O-W (27 Apr – 29 Apr) Y-T-D (Jan - Date) Nestle 615.26 -0.76% -28.50% Guinness 91.28 -3.92% -21.10% Honeywell 1.35 4.70% -27.30% Flourmill Nig. 21.00 5.00% 1.00% Cadbury 15.50 4.94% -9.60% NB 115.89 9.26% -14.80% Dangote Sugar 5.75 -0.86% -4.60% • Corporate results are influencing the stock market performance • Imported items and forex restrictions continue to stifle profitability of FMCG’s • Nestle Q1’16: Revenue up 31% to N36.13bn • PAT increased by 126.4% to N6.68bn • Stock price down 29% YTD
- 5. • Brent crude down 4.80% to $45.83pb • This time in 2015 was $66.45pb • WTI decreased by 2.72% to $44.78pb • Oil prices slipped on Chinese Data and increased OPEC output • The Chinese PMI fell to 49.4 from 49.7 in April • This marks the 14th consecutive contraction • Fears of slowing growth in Chinese oil demand pushed oil prices to 13 year lows earlier this year Oil Price Movement
- 6. • OPEC production is projected to have increased to 32.64mpd in April – Reuters • Russia’s production in April was 10.84mbpd • Near the 30 – year high of 10.91mbpd reached in March • A strengthening of the dollar also weighed on prices • A stronger dollar makes oil, a dollar denominated commodity, more expensive Oil Price Movement
- 7. Oil Markets Today 7 O I L BRENT WTI NATURAL GAS -2.80% -2.72% - 23.13/% 21.82% - 12.45% $45.83pb $44.78pb $2.04MMBtu
- 8. Agric Commodities Graphic Design Wheat Corn Cocoa Sugar Wheat futures down by 0.46% to $4.88/bushel • Heavy rains boosted outlook for summer wheat harvest in Kansas Corn prices decreased by 0.13% to $3.92/bushel •Argentine corn exports doubled and expected to increase further Cocoa prices up 1.10% to $3,217/mt •Supply deficit remains a cause for concern in top growing regions Sugar futures up 3.18% at $0.1621/pound •Drought seen shrinking India’s Sugar production to a seven year low
- 9. •With oversupply back in focus, oil prices to take a bearish turn •Recent rally may be self-defeating as it throws a lifeline to US shale producers •US crude inventories to increase as refineries reduce demand ahead of the maintenance season Outlook OIL
- 10. •Benevolent US weather may weigh on grain prices •US and Argentine corn supplies may reduce the impact of dry weather conditions in Brazil •Sugar – India may become net importer of sugar as drought parches fields •Cocoa – Bullish outlook for cocoa as supply deficit expected to increase by 23% in 2016 Outlook Grains Soft