Monday, June 1, 2020 OVERVIEW OF COMMODITIES IN THE GLOBAL MARKET

Global commodities markets sustains gradual recovery as countries continue to relax the Covid-19

pandemic induced restrictions. Oil prices were up, precious metals sustained their safe-haven positions

while the agricultural sector remain mixed

ENERGY

Oil prices were up last week, posting its best month ever as crude prices delivered

gains of nearly 100% in month of May 2020, after rebounding from its lowest levels

in history.

The rally was also further supported by a drop in the global supply of crude oil by

about 12 million bpd, to reach a nine-year low of 88 million bpd.

Overall, there was a 74% commitment to the OPEC+ massive production cut deal that

promised to take 9.7 million barrels of oil production per day out of the oversupplied

market. The group was able to cut just 5.91 million bpd from April levels, producing

24.77 million bpd.

Commodities Current

Price

Previous

Price

Weekly Change

(%)

WTI Crude ($/barrel) 35.49 33.25 +6.74

Brent ($/barrel) 35.33 35.13 +0.57

Bonny Light ($/barrel) 34.61 33.01 +4.85

Despite the few members who failed to bring production down as low as promised,

OPEC’s overall May 2020 production was its lowest since 2002.

Consequently, Nigeria’s benchmark crude oil, Bonny Light, was up by 4.85% w/w, to

close at $34.61/barrel, following a production cut of about 19%.

Apart from the risk of a new face-off between the US and China and a weaker-than-

expected demand recovery, the oil market focus in early June 2020 will once again turn

to Vienna where OPEC and the OPEC+ group will convene to discuss a path forward. A

new commitment by Russia (during the coming meeting on June 8 - 10) to extend the

output cut to July will aid oil price recovery, while a refusal will reverse the recent gains.

GTI Research Commodity report

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…Financial Possibilities

COMMODITY MARKET

REPORT

A new commitment

by Russia (during

the coming meeting

on June 8 - 10) to

extend the output

cut to July will aid

oil price recovery,

while a refusal will

reverse the recent

gains.

AGRICULTURE

Last week, Wheat prices were up by 2.56% w/w to $521.62 per bushel, amid

favourable weather projection in the U.S.

Similarly, Corn prices gained 2.44% w/w to $325.75 per bushel, supported by the

expectation of higher global demand as countries around the world continue easing

lockdown restrictions.

Cocoa prices also grew by 2.51% w/w to $2,454.00/MT, buoyed by favourable weather

conditions in West Africa.

However, the price of Sugar was down by 0.18% w/w to $10.91/lbs owing to weak

demand from Asia.

Commodities

Current

Price

Previous

Price

Weekly Change

(%)

Wheat ($/bushel) 521.62 508.62 +2.56

Corn ($/bushel) 325.75 318.00 +2.44

Cocoa ($/mt) 2,454.00 2,394.00 +2.51

Sugar ($/pound) 10.91 10.93 -0.18

This week, we expect prices of agricultural products to remain bullish, supported by

improved demand across the globe as more nations continue to open up their economy.

METAL

Last week, the prices of Gold and Silver was up w/w by 0.08% and 4.56% to

$1,736.90/oz and $4.56% respectively, as renewed tension between the U.S. and

China drove risk-averse buyers steadily towards the safe-haven assets.

Commodities Current

Price

Previous

Price

Weekly Change

(%)

Gold $/oz 1,736.90 1,735.50 +0.08

Silver $/oz 18.50 17.69 +4.56

Copper 2.43 2.39 +1.63

Lead $/oz 1,663.75 1.648.50 +0.93

This week, we expect a bullish outlook for precious metals, as the Gold acts as a

hedge against Central Bank monetization of the financial markets.

LIVESTOCK

Commodities Current

Price

Previous

Price

Weekly Change

(%)

Live Cattle ($) 97.70 97.00 +2.48

GTI Research Commodity report

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This week, we

expect prices of

agricultural

products to remain

bullish, supported

by improved

demand across the

globe as more

nations continue to

open up their

economy.

This week, we

expect a bullish

outlook for

precious metals, as

the Gold acts as a

hedge against

Central Bank

monetization of the

financial markets.

DOMESTIC COMMODITY PRICE MOVEMENT IN NIGERIA

Commodities Current

Prices

Previous

Month Prices

1-Year

Low

1-Year High

Garri (50kg) Yellow N14,500 N8,900 N6,150 N14,500

Rice (50kg) N27,000 N26,000 N14,000 N27,500

Flour(50kg) N12,700 N11,000 N10,000 N12,700

Beans (Oloyin) (50kg) N18,000 N14,000 N14,000 N25,500

Cement (50kg) N2,600 N2,600 N1,600 N2,700

Tomatoes (50kg) N12,000 N9,000 N6,000 N20,000

Pepper (bag) N13,000 N10,000 N5,000 N15,000

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GTI Research Commodity report

DISCLOSURE

Conflict of Interest

GTI Securities Ltd and its sister companies within the GTI Group may execute transactions in commodities mentioned in this document

and may also perform or seek to perform investment services for those commodities mentioned herein. Trading desks may trade, or

have traded, as principal on the basis of the research analyst(s) views and report(s).

Analyst Certification

Where applicable, the views expressed in this report accurately reflect the analysts' views about any and all of the investments or issuers

to which the report relates, and no part of the analysts' compensation was, is, or will be, directly or indirectly, related to the specific

recommendations, views or corporate finance transactions expressed in the report.

Disclaimer

This report by GTI Securities Ltd is for information purposes only. While opinions and estimates therein have been carefully prepared,

the company and its employees do not guaranty the complete accuracy of the information contained herewith as information was also

gathered from various sources believed to be reliable and accurate at the time of this report. We do not take responsibility therefore for

any loss arising from the use of the information.

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