The recent spike in commodity prices especially beans and yellow garri confounded most analysts. Also noteworthy is the price of cement which has spiked 17.3% to N2,700.
Typically the price of cement falls during the raining season. This contrarian movement is most likely due to the surge in demand due to an aggressive civil construction agenda of the federal and state governments.
In spite of these aberrational price increases, analysts are still convinced that the inflation numbers for April will still show a slight decline.
The FDC Think Tank summarizes these events in a month which promises to be interesting with the release of key economic variables.
Burning Economic Issues
Economic News
The Good
The Bad
• Budget delay likely to derail economic recovery targets
Power Generation analysis & Impact
Domestic Commodity Prices Movement
Burning Economic Issues
Stock Market
• NSE ASI 0.7% to 26,419.17 pts
• Positive market sentiment supporting price rally based on corporate earnings
• Mainly in the banking sector
Oil prices
• Brent crude by 2.11% to $49.4pb
• Saudi Arabia anticipates an extension in the output cut deal beyond 2017
• Rally in the market despite waning Chinese demand in April
• China’s crude imports eased by 9% to 8.37mbpd
• YoY comparisons show China crude imports up 5%
Oil markets today
Outlook – Oil Prices
• Oil prices might be reaching capitulation point – Goldman
Outlook – Agric Prices
Grains
• Grains expected to trade positive on planting and weather conditions
Soft
Sugar
• Market remains oversupplied, to trade bearish in the short-term
Cocoa
• Prices to be driven by supply fundamentals despite slight rally in prices
