Bears dominate the Nigeria domestic grains market

It was a bearish week for most grain commodities as paddy rice topped the laggard chart. Sorghum and maize followed closely plunging 9.30% and 9.07% respectively. A similar trend was witnessed in the open market.  

For our benchmark indexes, the S&P GSCI Agriculture index gained 4.99% while the AEI gained 3.44% relative to the previous week’s close. The S&P GSCI Agriculture index has continued to outperform other indexes on an S-t-D basis. 

High global energy prices are expected to continue pushing up the cost of fertilizers, transportation, and crop production, in addition, to impart bans and restrictions to further tighten supplies.

Market Price Performance

• Domestic commodity prices fell on the Exchange during the week. However, their prices gained on a Y-t-D basis except sorghum which fell by 16.33%.
• The open market prices for domestic grains followed a similar dimension as the exchange prices, W-o-W. On a Y-t-D basis, unlike the exchange prices, their prices fell except for Paddy rice which gained 9.23%.
• International price of sorghum, ginger, sesame, and cashew all gained 0.12% compared to the previous week’s prices while soybean and maize gained 2.03% and 1.98% respectively. Notably, grains gained relative to their prices at the start of the year.

Check out other relevant details on market performance by accessing the report here.