Commodity Market Weighs Coronavirus Impact

Scarcity of Key Commodities In Nigeria Causes Price Surge - AFEX
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Markets weigh CoVid-19 virus impact as Oil price inch higher. Precious metals sustain their safe-haven positions while the agricultural sector remains mixed.

  • Last week, Oil prices continued to gain, amid broad optimism that the hit from Coronavirus (also known as CoVid-19) will be short-lived, together with the US move to cut more Venezuelan crude from the market (a move which may further affect global supply).

  • However, despite the growing fear of possible further the decline in global oil demand (as the Coronavirus the epidemic continues to spread beyond the Chinese borders with a rising number of the death being reported during the week), we are yet to hear further announcement from OPEC+ regarding planned output cut aimed at preventing price slump.
  • Last week, Wheat prices were up 1.31% w/w to $551.75 per bushel, despite slowing global demand from China.
  • However, Corn prices decreased by 0.02% w/w to $377.00 per bushel amid a global supply glut.
  • Cocoa prices increased by 1.21% w/w to $2,939.00/MT, despite unfavourable weather conditions in Ghana and Ivory Coast, limiting global supply.
  • Sugar prices was also up by 3.52% w/w to $15.59/lbs amid drought in Thailand putting pressure on the already stretched supply line, and reducing global output.
  • Investors desire to hold their assets in safe haven pushed Gold prices higher by 3.91% w/w to $1,644.60/oz as the number of global cases of CoVid-19 continues to rise.
  • Silver prices was also up by 4.49% w/w to $18.53/oz, as it remains supported by investors’ desirers to hold the asset during this Coronavirus period.
SOURCES: Financial Market Dealers Association of Nigeria,, Bloomberg and GTI Research.