Commodities Market Update

1. Burning economic issues
• Nigeria’s Forcados terminal production restored
• Aggregate borrowing ceiling set at $22.08bn in 2017
• FG to float Diaspora bond soon, targets $21bn
• Guinness Nigeria to increase local sourcing by 44%
• Naira crashes again: Parallel market (N470/$), Interbank (N307.28/$)
• US GDP growth estimated to be sharply higher at 2.5%

2. Domestic commodity prices
• Mixed movements in the domestic market this week
• Rice falls to N20,000 for a 50kg bag
• Garri increased to N15,000, Palm oil up to N17,000
• Impacting the CPI levels in October

3. Domestic commodity prices
LAGOS ONITSHACommodities
C U R R E N T P R I C E S
KANO
Palm Oil (25L)
Maize (50kg)
Tomatoes (50kg)
Garri (50kg)
Rice (50kg)
Flour (50kg)
Sugar (50kg)
Beans (50kg)
Cement (50kg)
Semolina(10kg) N3,100
N15,000
N20,000
N11,000
N19,000
N22,500
N2,200
N13,250
N8,000
N3,150
N15,200
N19,400
N11,000
N19,500
N22,300
N2,200
N13,350
N7,800
N3,120
N15,500
N20,200
N11,000
N19,800
N22,800
N2,300
N13,450
N8,000
N2,300
N8,000
N12,000
N8,500
N8,000
N9,000
N1,400
N9,000
N8,000
N3,100
N15,000
N22,600
N11,000
N17,000
N19,000
N2,200
N13,250
N8,000
N17,800 N17,200 N6,000 N17,000N17,000
L a g o s P r i c e
1 year Low 1 year High
PriceElasticPriceInelastic

4. Consumer goods
Current Price – L agos
N100
N250
N350
N370
N1,800
GOODS
Bread Loaf
Coke (60cl)
Beer (60cl)
Semovita (1kg)
Indomie (1 cartoon)

5. Stock market
•NSE ASI up by 0.08% to close at 27,120.39pts
•Presco’s net income surged by 98.25% to N6.8bn in Sept’16 from N3.43bn in Sept’15
Share Prices
(N)
W-O-W
(24 Oct – 26 Oct)
Y-T-D
(Jan - Date)
Nestle 797.95 0.26% 7.20%
Guinness 80.00 0.62% 33.10%
Honeywell 1.18 9.23% 36.60%
Flourmill 19.50 2.50% 6.30%
Cadbury 11.88 - 30.70%
NB 146.00 0.34% 7.40%
Dangote Sugar 6.50 4.50% 7.80%
Presco 42.3 5.09% 28.20%

7. Oil markets today
O I L
BRENT
WTI
L N G
NATURAL GAS
2.74%
2.65%
3.70%
34.28%
33.79%
17.17%
$49.98pb
$49.18pb
$2.73MMBtu

8. Oil prices slips to $49
• Brent crude 2.74% to $49.98pb
• WTI 2.65 % to $49.18pb
• Prices declined on concerns over OPEC’s output deal
• Losses were capped by the draw in US crude inventory
• Stockpiles fell by 553, 000 barrels
• Contrary to the 1.7mb build up projected by analysts

9. Agric commodities
Graphic
Design
Wheat Corn Cocoa Sugar
•Cocoa prices up
1.24% to $2,660/mt
•Illegal miners in
Ghana, popularly
known as Galamsey,
threatens cocoa
production
•Sugar prices down
1.46% to $22.87/pound
•Prices down on constant
supply and limited offtake
•Corn futures up
1.83% to $3.55/bushel
•Supported by slow
corn harvesting in the
US and France
•Humid weather
delaying harvests in
the Black Sea region
•Wheat futures up
2.19% to $4.12/bushel
•Wheat prices rose as
the Euro weakened and
Egypt supported export
demand

10. Outlook – oil prices
• Higher US growth rate will inspire the Fed to increase interest
rates
• Stronger dollar will push oil prices lower
• All eyes are on November OPEC meeting
• Arab producers (Saudi Arabia, UAE and Kuwait) hold the ace

11. Outlook – agric prices
Grains
SoftSUGAR
• Slowing demand for sugar despite deficit will weigh on futures
COCOA
• Galamsey in Ghana and crop disease in Ivory coast will prop
up prices
• Weaker euro will spur demand for grain futures in Europe
• Slow grain harvests will support prices in the near-medium
term