Commodities Weekly: Lock-down easing spurs global market recovery

Must Read

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...

List of First Bank of Nigeria Sort Codes in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...

List of United Bank for Africa (UBA) Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...
- Advertisement -

Global commodities markets sustain gradual recovery as countries continue to lift business lockdown imposed to combat the coronavirus pandemic. Oil prices were up, precious metals shed their safe-haven positions while the agricultural sector remains mixed.

ENERGY

  • Oil prices were up last week, sustaining prior week positive momentum.
  • The rally was mainly supported by the OPEC, Russia, and allies’ agreement to extend
    record oil production cuts till the end of July, prolonging a deal that has helped crude
    prices double in the last two months, by withdrawing almost 10% of global supplies
    from the market.
  • The group, known as OPEC+, also demanded countries such as Nigeria and Iraq, which exceeded production quotas in May and June, to compensate with extra cuts in July to September.
  • Consequently, Nigeria’s benchmark crude oil, Bonny Light, was up by 18.95% w/w, to close at $41.17/barrel.

Commodities Weekly: Lock-down easing spurs global market recovery - Brand Spur

This week, we expect oil prices to remain strong, keeping their $40 plus levels. This is expected to be driven by improved demand (amongst others), as countries around the world continue to ease the pandemic induced lockdown.

AGRICULTURE

  • Last week, Wheat prices were down by 1.20% w/w to close at $515.32 per bushel
    despite reduced export from Russia.
  • Corn prices gained 1.69% w/w to close at $331.25 per bushel, as market players priced
    in the potential effect of the brewing trade tension between the U.S. and China.
  • Cocoa prices shed 2.28% w/w to settle at $2,398.00/MT, buoyed by a persistent decline
    in global cocoa production, especially from Ghana and Ivory Coast.
  • The price of Sugar was up by 10.17% w/w to $12.02/lbs owing to the lingering sugar
    crisis in Pakistan.
Read Also:  Report of Investment Announcements, Q1 2019

This week, we expect the increased global output of grains to keep prices abated.

METAL

  • Last week, the prices of Gold and Silver were down w/w by 3.10% and 5.51% to $1,683.00/oz and $17.48% respectively, losing their safe-haven positions. This came as many investors turned to mainstream assets (equities, money markets, and fixed income) to take advantage of the current attractive valuation, as well as liquidity benefit.
Read Also:  Oil Prices Crash As OPEC Prepares To Boost Supply

This week, we anticipate a mixed outlook for precious metals, as many investors are likely to shift towards mainstream assets due to their attractive valuation and near liquidity status.

LIVESTOCK

Commodities Weekly: Lock-down easing spurs global market recovery - Brand Spur

DOMESTIC COMMODITY PRICE MOVEMENT IN NIGERIA

Commodities Weekly: Lock-down easing spurs global market recovery - Brand Spur

- Advertisement -

GTI Research

- Advertisement -
Commodities Weekly: Lock-down easing spurs global market recovery - Brand SpurCommodities Weekly: Lock-down easing spurs global market recovery - Brand Spur

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Commodities Weekly: Lock-down easing spurs global market recovery - Brand SpurCommodities Weekly: Lock-down easing spurs global market recovery - Brand Spur

Latest News

LafargeHolcim Proposes Reducing Company Name To Holcim

The world’s largest cement maker, LafargeHolcim is proposing to simplify its name to Holcim Limited, reverting to the name...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Commodities Weekly: Lock-down easing spurs global market recovery - Brand SpurCommodities Weekly: Lock-down easing spurs global market recovery - Brand Spur