Commodity prices have maintained their upward trajectory this week with further spikes in the price of Garri and Beans. Garri has increased by 23% to N32, 000 while beans has increased by 18% to N26,000.

Oil prices continue to trend downwards to $49.24pb, despite news of severed relationships between four Arab nations and Qatar. On the bright side, Forcados terminal is set to resume operations thereby increasing Nigeria’s oil production by approximately 300,000bpd.

Burning Economic Issues

Oil price falls to $49.25pb
4 Arab oil countries cut diplomatic ties with Qatar
Forcados terminal to resume with capacity of 300,000 bpd
NSE market cap. reaches an 11-month high of N11.2trn
NAFEX window attracts over $1bn deals in the past 6 weeks
Naira appreciates to N370/$, NAFEX at N378/$
Diesel remains flat at N180/ltr
Economic News

The Good

Oil production expected to increase to support external reserves
Forcados pipeline will improve power (associated gas)
The Bad

Spot oil price getting close to benchmark
Delay in budget signing could impede growth
Power output declines to 3,345MW/hr (down 289MW)
Garri up by 23% on herdsmen attack on cassava farms
Beans prices spike on fasting & seasonal effects
Power Generation analysis & Impact

June 4th: Average power output was 3,345MWh/hour (down 289MWh/h)
2,895MW lost from gas, line and high frequency constraints
Estimated loss: N1.39m (annualised at N500.4bn /$1.25m)
Increasing high frequency constraints due to grid indiscipline
Affecting generation at Afam VI, Jebba and Shiroro


Domestic Commodity Prices Movement




Stock Market

NSE ASI 3.85% to 32,578.38pts
Positive sentiment drives market performance

Oil prices

Brent crude 2.73% to $49.25pb
As US leaves the Paris climate agreement
Global production levels continue to cap gains from oil prices
US oil output has surged to 9.3mb over the past 8 months
Cut in ties between 4 Arab nations and Qatar
Oil markets today




Outlook – Oil Prices

Paris agreement means more shale oil
Oil price volatility to continue
Middle East crisis could deteriorate
Outlook – Agric Prices

Grains

Market expected to trade bullish as weather conditions are expected to drive market sentiment
Soft

Sugar

Expectations of a bullish sugar market to persist on lower global output
Cocoa

Cocoa price to edge higher as Ivory Coast farmers neglect plantation

https://brandspurng.com/beans-spike-by-18-to-n26000/

We don hear

To chop Beans na wahala again

This is a good one. Op, please keep it up. Lalasticlala, kindly push this to the front Page.