Inflation in Nigeria retreated to 12.48% in April, representing the 15th consecutive monthly decline since the 2015 recession. Agricultural capital importation reached $130 million in the first quarter of 2018, making agriculture the fifth highest recipient of foreign investment. Commodity prices for cocoa, sugar, soybeans, maize and wheat declined slightly during the week of May 7-11, with cocoa prices expected to remain around $2700 and oversupply continuing to pressure sugar prices.

1. Inflation retreats to 12.48%
Agricultural Capital Importation reaches $130 million
Inflation Retreats to 12.48%
The consumer price index (CPI) for the month of April retreated by 0.86% to reach a 12.48%.
This represents the 15th
consecutive month in which the CPI has receded following the harroing
experience of the of the 2015/2016 recession. The food index also relaxed as it rose by 14.8%
down by 1.28% from the level of increase in March. The increase in the food index was fueled
by price increases in potato, yam and tubers, bread and cereals, oil and fats, fruits and vegetables,
coffee, tea and cocoa, milk and cheese and fish.
Agricultural Capital Importation reaches $130 million
Data released by the National Bureau of Statistics (NBS) showed that the capital importation
into the agricultural sector during the first quarter of 2018 reached $ 130 million. This represents
a significant amount as agriculture was the fifth highest recipient of capital within the period.
This capital imported includes portfolio investment, foreign direct investment and other
investment. The investment climate in the agricultural sector has been quite interesting in Q1
2018 with significant ground breaking ceremonies and factories. It will be recalled that that Flour
Mills opened a sugar estate in Niger in March. The outlook is that of continued investment as the
government continues to pursue its agricultural revolution plan.
Commodity Prices for May 7 – May 11, 2018
Week Commodity Average ($) Change (%)
MayW2 Cocoa 2742.321
0.64
MayW2 Sugar 11.942 3.15
MayW2 Soy bean 205.783
0.40
MayW2 Maize 206.144
0.96
MayW2 Wheat 193.605
1.45
1
ICCO Daily Prices
2
ISO Daily Prices
3
IGC Soy bean Sub Index
4
IGC Maize Sub Index
5
IGC Wheat Sub Index
Researched and Designed
By
Ogunbiyi Yusuf
University of Ibadan
Agri-Intelligence Weekly
May 15, 2018|Issue 8

2. Cocoa Slows Down
Prices of cocoa beans have continued to maintain a slow down, albeit stabilizing, since they
reached all year high on the first trading day in May. The beans prices have continue to settle
down after a massive rally due to the unfavorable weather in Cote d’ivoire which raised concerns
among buyers for supply shortages. The New York and London exchanges also show significant
stability as the prices seem to have reached a peak. The ICCO daily price index retreated slightly
by 0.64% for the week under review and is expected to remain in the $2700 for the coming
weeks.
Sugar swallows Bitter Pill
The month of May continues to look pale for sugar prices as the ISO price index retreated by
3.15% wow amidst continued oversupply which reigns in the market. The situation in the sugar
market is expected to remain pale for a long period of time as analysts predict that the glut might
extend into 2019. This expectation is further bolstered as the Indian Government approved the
export subsidy to cushion the effects of the supply glut on the domestic farmers.
Soybean, Maize and Wheat Take a Dip
The soybean, maize and wheat sub indexes of the IGC index all took a dip in the week under
review with the soybean prices moving into negative territories by 0.4%, maize retreating by
0.96% and wheat following suit by 1.45%. These come as the heightened concern over weather
challenges to planting dwindles and the USDA 2018/2019 forecast suggesting an increase in
availability of wheat and soy beans. The