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Exporters Lament Drop in Produce Prices



  • Exporters Lament Drop in Produce Prices

Falling agro exports prices, despite the rise in cocoa prices, is giving stakeholders concerns. Cocoa price has continued its bullish trend, hitting more than $2,000 per tonne.

On March 8, cocoa price was $2504 at the New York futures, while the International Cocoa Organisation (ICCO) price was $2489.36.

Notwithstanding, the Federation of Agricultural Commodity Association (FACAN) President, Dr. Victor Iyama, said farmers were confronting falling prices of key agricultural commodities, such as ginger, because of fresh supplies from other countries.

He said ginger price had fallen to $980 per tonne, stating that the price plunged because exports to Asia had slowed due to surplus production there. Increased output from other regions, specifically China, has also resulted to a glut of the product in the market.

Between last year and this year, demand for ginger also endured significant ups and downs.

He said despite increased local production, farmers might get less than they bargained for.

A member of the Nigerian-Vietnam Business Association, Mr Sunny Anjorin, said the price of dried ones coming from Nigeria had plummeted.

Before now, prices in China reached $3,000. It was estimated that total production in China would be about 15,000 tonnes, but now export traders re-estimated production to the tune of 20,000 -25,000 tonnes. He explained that China was investing in massive ginger production.

According to him, China is a real threat to Nigeria as they offer the produce at the lowest price level in the global market. He complained that stored ginger was rotting due to lack of market. He explained that global producers of ginger were harvesting.

For example, the domestic price of ginger in Kaduna has dropped from N280,000 per tonne to N240,000.

India is the world’s largest producer of ginger, with an estimated 799,860 tonnes from 1,53,450 hectares (ha) in 2015 and 16, according to statistics.

However, in terms of area, Nigeria and China are at the top. India and China contribute almost 50 per cent of world ginger production.

Experts said the Nigeria and China gimger’s low rates in the international market were impacting the Indian ginger exports.

With the unstable price of cashew nut in the global market, he advised Nigerians to produce more highly-processed products.

He said the price of cashew nut exports may not remain stable. He urged the sector to focus on improving the product quality, processing technique and domestic market development.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade experience in the global financial markets.


OPEC Agrees to Increase Oil Supply by 500,000 Barrels Per Day Ahead of Surge in Demand



Nigeria's economic Productivity

OPEC and allies finally agreed to ease their 7.7 million barrels per day production cut by 500,000 barrels per day starting from January 2021.

This will now bring the oil cartel’s total production cuts to 7.2 million barrels per day starting from next year.

Oil prices rose after the news as the market believed the approval of Pfizer COVID-19 in the United Kingdom will kick start a series of approvals and helped restore confidence, increase business activities and demand for the commodity across the globe.

After the outcome of the meeting was made public on Thursday, Brent Crude Oil against which Nigerian oil is priced gained 1.35 percent on Friday after gaining 1.4 percent on Thursday to $49.37 per barrel at 11.35 am Nigerian time on Friday.

The US West Texas Intermediate gained 1.29 percent to $46.23 barrel on Friday.

500,000 bpd from January is not the nightmare scenario that the market feared, but it is not what was really expected weeks ago,” said Rystad Energy senior oil markets analyst Paola Rodriguez Masiu. “Markets are now reacting positively and prices are recording a small increase as 500,000 of extra supply is not deadly for balances,” she added.

Investors King increased business sentiment in the energy sector to boost investment, increase activity in the sector and most important improve crude oil demand enough to accommodate the 500,000 barrels per day extra that would be hitting the global market starting from January.

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Communities in Delta State Shut OML30 Operates by Heritage Energy Operational Services Ltd




The OML30 operated by Heritage Energy Operational Services Limited in Delta State has been shut down by the host communities for failing to meet its obligations to the 112 host communities.

The host communities, led by its Management Committee/President Generals, had accused the company of gross indifference and failure in its obligations to the host communities despite several meetings and calls to ensure a peaceful resolution.

The station with a production capacity of 80,000 barrels per day and eight flow stations operates within the Ughelli area of Delta State.

The host communities specifically accused HEOSL of failure to pay the GMOU fund for the last two years despite mediation by the Delta State Government on May 18, 2020.

Also, the host communities accused HEOSL of ‘total stoppage of scholarship award and payment to host communities since 2016’.

The Chairman, Dr Harrison Oboghor and Secretary, Mr Ibuje Joseph that led the OML30 host communities explained to journalists on Monday that the host communities had resolved not to backpedal until all their demands were met.

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Crude Oil Recovers from 4 Percent Decline as Joe Biden Wins



Oil Prices Recover from 4 Percent Decline as Joe Biden Wins

Crude oil prices rose with other financial markets on Monday following a 4 percent decline on Friday.

This was after Joe Biden, the former Vice-President and now the President-elect won the race to the White House.

Global benchmark oil, Brent crude oil, gained $1.06 or 2.7 percent to $40.51 per barrel on Monday while the U.S West Texas Intermediate crude oil gained $1.07 or 2.9 percent to $38.21 per barrel.

On Friday, Brent crude oil declined by 4 percent as global uncertainty surged amid unclear US election and a series of negative comments from President Trump. However, on Saturday when it became clear that Joe Biden has won, global financial markets rebounded in anticipation of additional stimulus given Biden’s position on economic growth and recovery.

Trading this morning has a risk-on flavor, reflecting increasing confidence that Joe Biden will occupy the White House, but the Republican Party will retain control of the Senate,” Michael McCarthy, chief market strategist at CMC Markets in Sydney.

“The outcome is ideal from a market point of view. Neither party controls the Congress, so both trade wars and higher taxes are largely off the agenda.”

The president-elect and his team are now working on mitigating the risk of COVID-19, grow the world’s largest economy by protecting small businesses and the middle class that is the backbone of the American economy.

There will be some repercussions further down the road,” said OCBC’s economist Howie Lee, raising the possibility of lockdowns in the United States under Biden.

“Either you’re crimping energy demand or consumption behavior.”

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