Commodity

Current Prices

LAGOS

Current Prices

KANO

Current Prices

ONITSHA

Cement (50kg) N1,700 N1,800 N1,700

Cassava (Garri) (50kg) N15,000 N16,400 N15,400

Maize (50kg) N8,200 N8,000 N8,400

Flour (50kg) N8,800 N9,100 N9,000

Sugar (50kg) N9,000 N9,200 N9,250

Rice (50kg) N13,000 N13,500 N13,700

Palm Oil (30L) N9,600 N9,300 N9,000

Beans (50kg) N27,000 N27,200 N27,100

Semovita (10kg) N1,800 N1,900 N1,900

Pasta N2,600 N2,750 N2,700

Domestic Commodity Prices Stable

Domestic Prices

2

FOOD STORE

•Domestic prices have remained sticky

•USDA expects rice imports to fall by 500, 000 tonnes to

2.5 million tonnes in 2016

•Influenced by foreign exchange restrictions & current

ban on importation of rice via land borders

•Local rice considered to be of lower quality despite

being more nutritive

•Due to the inflated price of a bag of rice, USDA expects

consumption to decline by 5% to 5.4mt in 2015/16

Domestic Prices

3

FOOD STORE

•Herdsmen remain a threat to food security

•Initially, herdsmen and farmers maintained symbiotic

relationship

•In time past, cattle served as a means of transport and

source of manure to fertilize fields while herdsmen

obtained grains for their cattle

•However as farming activities expanded, conflict over

grazing areas arose due to crop damage

•This may stoke inflation in the months ahead

Stock Market

Share Prices

(N)

W-O-W

(27 Apr – 29 Apr)

Y-T-D

(Jan - Date)

Nestle 615.26 -0.76% -28.50%

Guinness 91.28 -3.92% -21.10%

Honeywell 1.35 4.70% -27.30%

Flourmill Nig. 21.00 5.00% 1.00%

Cadbury 15.50 4.94% -9.60%

NB 115.89 9.26% -14.80%

Dangote Sugar 5.75 -0.86% -4.60%

• Corporate results are influencing the stock market performance • Imported items and forex restrictions continue to stifle profitability of FMCG’s • Nestle Q1’16: Revenue up 31% to N36.13bn • PAT increased by 126.4% to N6.68bn • Stock price down 29% YTD

• Brent crude down 4.80% to $45.83pb

• This time in 2015 was $66.45pb

• WTI decreased by 2.72% to $44.78pb

• Oil prices slipped on Chinese Data and increased OPEC output

• The Chinese PMI fell to 49.4 from 49.7 in April

• This marks the 14th consecutive contraction

• Fears of slowing growth in Chinese oil demand pushed oil

prices to 13 year lows earlier this year

Oil Price Movement

• OPEC production is projected to have increased to

32.64mpd in April – Reuters

• Russia’s production in April was 10.84mbpd

• Near the 30 – year high of 10.91mbpd reached in

March

• A strengthening of the dollar also weighed on prices

• A stronger dollar makes oil, a dollar denominated

commodity, more expensive

Oil Price Movement

Oil Markets Today

7

O I L

BRENT

WTI

NATURAL GAS

-2.80%

-2.72%

-

23.13/%

21.82%

- 12.45%

$45.83pb

$44.78pb

$2.04MMBtu

Agric Commodities

Graphic Design

Wheat Corn Cocoa Sugar

Wheat futures down

by 0.46% to

$4.88/bushel

• Heavy rains boosted

outlook for summer

wheat harvest in

Kansas

Corn prices

decreased by 0.13%

to $3.92/bushel

•Argentine corn

exports doubled and

expected to increase

further

Cocoa prices up

1.10% to $3,217/mt

•Supply deficit

remains a cause for

concern in top

growing regions

Sugar futures up 3.18%

at $0.1621/pound

•Drought seen

shrinking India’s Sugar

production to a seven

year low

•With oversupply back in focus, oil prices to take a

bearish turn

•Recent rally may be self-defeating as it throws a

lifeline to US shale producers

•US crude inventories to increase as refineries

reduce demand ahead of the maintenance

season

Outlook OIL

•Benevolent US weather may weigh on grain

prices

•US and Argentine corn supplies may reduce

the impact of dry weather conditions in Brazil

•Sugar – India may become net importer of

sugar as drought parches fields

•Cocoa – Bullish outlook for cocoa as supply

deficit expected to increase by 23% in 2016

Outlook Grains

Soft