This commodity update looks at both global and domestic price movements for the week. Palm and Cement prices jolt the market. This is due to the fact that cement has high logistics and distribution costs while for palm oil, it is due to high demand and import restrictions. Palm oil is a major input to noodles
A year after the 2015 general elections, the equity market is down 26% as the peg in the Naira continues to impair investor confidence. Dangote cement Profit After Tax (PAT) rose up by 13.68% to N181.3billion with a turnover up by 25.56% to N491.7billion.
Brent crude rose up by 5.70% to $39.84 per barrel. Ahead of April 17th meeting in Doha, Qatar by members of the Organisation of Petroleum Exporting Countries (OPEC) and non-OPEC producers, U.S. crude oil supplies fell by 4.9mb, according to Energy Information Administration (EIA) with the decline attributed to an increase in refinery activity. Refinery capacity increased to 91.4% from 90.4% in the prior week. Since the 2015 General Election, oil prices have fallen by 32%.
There are however mixed performance in the agricultural Commodities for the week. Wheat prices is expected to remain bearish on favorable crop condition while bullish outlook for corn futures is anticipated as Brazilian exports slow.
The demand for sugar is expected to increase as confectionaries prepare for the summer season while there is positive outlook for cocoa as the global confectionary market is expected to grow by 1.8% in 2016.
