Connect with us

Commodities

500,000 Families Earned $500m Cashew Export, Says FG

Published

on

Nigeria to expand Cashew Nut export by 2020

500,000 Families Earned $500m Cashew Export, Says FG

The Federal Government on Sunday put the country’s earnings from the export of cashew at $500m and stated that this was supporting about 500,000 families across the country.

Minister of Agriculture and Rural Development, Sabo Nanono, disclosed this in Abuja when he signed a Memorandum of Understanding with the United States Department of Agriculture West Africa PRO-Cashew Project.

The Federal Ministry of Agriculture and Rural Development said in a statement issued in Abuja by an officer in the press department, Okeh Juliet, that the project would be for the development of the cashew agro industry.

The minister said the initiative would improve productivity, expand the national hectarage of the crop and achieve national food and nutrition security, revenue generation, exchange earnings, wealth creation and employment across the country.

“Nanono informed (his guests) that government’s focus is to continuously and sustainably develop the commodity for export because since the 1990s cashew has increased the Nigerian Gross Domestic Domestic ranking as the second non-oil export foreign exchange earner for the country,” the statement stated.

The ministry added, “It (cashew export) generated about $500m for the country in 2018, providing livelihood for about 300,000 to 500,000 families mostly youths and women in Nigeria.”

The minister was further quoted as saying, “Currently, the national production capacity of cashew in 2020 is 260,000 metric tonnes on 100,000 hectares of land. Average yield is 600kg/ha as against the global average of 1.23kg/ha.”

He said the latest initiative would help the ministry achieve an increased production capacity, rising from 260,000MT in 2020 to 350,000MT by 2023 and processing capacity from 15 per cent in 2020 to 35 per cent by 2023.

To kickstart the collaboration with the USDA West Africa PRO-Cashew project, Nanono constituted the Cashew Value Chain Working Committee to look into the problems and challenges affecting the growth of the sub-sector in Nigeria.

He said the committee with the support of USDA West Africa PRO-Cashew Project would develop a 10-year strategic plan for Nigeria cashew project.

The Chief of Party/ Managing Director, USDA West Africa PRO-Cashew Project, Jeans Guay, said the project was a five-year West Africa project that would be implemented by cultivating on new frontiers in agriculture.

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

Continue Reading
Comments

Commodities

Soybean Oil Prices to Rise by 4% in 2022 Over Increase in Demand for Biofuels

Published

on

Soybean Oil

In 2022, global soybean oil prices, driven by an increase in the demand for biofuels, have been projected to rise by about 4 percent, to $1,425 per tonne; a market report from IndexBox reveals.

According to the IndexBox report, the growing demand for biofuels, especially in Asia, will increase the prices of soybean oil globally.

The platform put it that in 2021, the average annual soybean oil price rose by 65 percent year-on-year to $1,385 per tonne, from $838 per tonne. Strong demand and high freight rates in China, which is the world’s second-largest importer of soybean oil, resulted in the most rapid price growth of the commodity in the third quarter (Q3) of the same year. Weather-related disruptions to production in South America also caused soybean oil prices to rise fast.

In 2020, IndexBox estimates that soybean oil purchases in the foreign markets rose by 7.5% to 13 million tonnes, increasing for the second year in a row after three years of decline. In value terms, soybean oil imports have grown notably to $10.3 billion.

India was the highest importing country with a purchase volume of around 3.7 million tonnes, accounting for 28% of global supplies. China ranked second with a purchase volume of 963 thousand tonnes.  Algeria (670 thousand tonnes) and Bangladesh (666 thousand tonnes) were ranked as the third and fourth major importing country.

The four countries altogether accounted for about 17% of total soybean oil imports. Coming behind as the fifth-highest importer is Morocco (547 thousand tonnes), followed by Mauritania (537 thousand tonnes), Peru (521 thousand tonnes), South Korea (390 thousand tonnes), Colombia (378 thousand tonnes), Venezuela (373 thousand tonnes), Egypt (243 thousand tonnes), Poland (229 thousand tonnes) and Nepal (215 thousand tonnes).

India in value terms ($3 billion) being the largest market for soybean oil imports in the world, accounted for 29 percent of global imports. The second position in the ranking was taken by China ($725 million) with a 7 percent share. North African country, Algeria came third with a share of 4.6 percent of the total value.

Top Soybean oil exporters

In 2020, Argentina was the major exporter of soybean oil (5.3 million tonnes), constituting 42% of total exports. The United States (1238 thousand tonnes), Brazil (1110 thousand tonnes), Paraguay (631 thousand tonnes), the Netherlands (615 thousand tonnes) and Russia (611 thousand tonnes) follow, altogether accounting for 33% of global supplies. Meanwhile, Spain (387 thousand tonnes), Bolivia (377 thousand tonnes), Ukraine (302 thousand tonnes), Turkey (208 thousand tonnes) and Germany (192 thousand tonnes) had relatively small shares in the total volume.

In value terms, Argentina remains the largest supplier of soybean oil in the world ($ 3.7 billion), which accounts for 39% of global exports. The United States ($ 979 million), with a share of 10% of the total supply is ranked second. Both countries are followed by Brazil with an 8% share.

Continue Reading

Commodities

Back into Positive Territory

Published

on

Brent crude oil - Investors King
Prev1 of 2
Use your ← → (arrow) keys to browse

By Craig Erlam, Senior Market Analyst, UK & EMEA, OANDA

Stock markets are off to a positive start to the week in Europe and the US, in keeping with the price action we’ve seen over the last week since the new variant discovery.

Reports of the Omicron symptoms being less severe are boosting risk appetite but it’s too soon to get carried away. For one, we’ve seen this repeatedly since the initial news broke a little over a week ago. Markets have been very headline-driven and this is just the latest rally on the back of some positive reports.

While this may be the first in a slew of positive data around the new variant, it could also be the anomaly and what follows could explain why world leaders and various agencies have been so anxious. Let’s hope for the former but I expect extreme caution to remain until the data gives us cause for more optimism.

Weeks like this, the economic data would always play second fiddle but as it turns out, it’s looking a little thin on that front and central banks are in the same position as the rest of us. So the rest of the week will remain very Omicron headline-driven which will likely mean plenty more volatility.

By then, we may know a lot more which means the conversation can move on to the monetary response. Unfortunately, that comes too late for the RBA and BoC tomorrow and Wednesday, respectively, and perhaps just in time for the Fed, ECB, and BoE next week. If the news isn’t good on the variant then central banks are going to find themselves in an awful position, which could rock the boat somewhat.

Oil rebounds as Saudi Arabia boosts prices

Oil prices are bouncing back on Monday, up more than 2% after coming under significant stress last week. Reports of Saudi Arabia raising crude prices are apparently behind the move, although I’m not entirely convinced. Sure, it portrays confidence in the markets but it doesn’t alter the uncertain outlook in any way. I think it’s probably just a risk rebound as we’re seeing elsewhere.

Ultimately, the most bullish thing for prices is that Omicron is reportedly less severe and if more good news follows, we can all relax a little and the downside risks to the economy will abate. If the good news doesn’t follow, OPEC+ will pare back output and support prices that way. The question is how much the lows will be tested in the interim, if at all. Producers’ resolve has been tested before on many occasions.

Gold remains under pressure as USD creeps higher

Gold remains under pressure, as US yields at the shorter end of the curve and the dollar continue to creep higher. As is the case with every other asset class, the yellow metal will remain extremely sensitive to developments over the next couple of weeks as we learn how great a threat Omicron will pose and what the monetary response will be.

It’s found some support around $1,760 late last week where it has repeatedly done so since the middle of October. A move below here could see focus shift back towards $1,720 and then $1,680 which would be around the lows for this year.

Bitcoin partly recovers after crash

Bitcoin has had an eventful few days, having been pummelled on Saturday before recouping much of those losses. Whatever the cause of the flash crash, it hasn’t managed to fully reverse the losses and remains below $50,000. That could leave it vulnerable in the near term, especially with it struggling to track other risk instruments higher on the day. Bad news on Omicron could really put it under pressure.

Prev1 of 2
Use your ← → (arrow) keys to browse

Continue Reading

Commodities

Why the Price of Cooking Gas is Increasing

Published

on

cooking gas cylinder

For some time now there has been a continual surge in the price of Liquefied Petroleum Gas (LPG) popularly known as cooking gas in Nigeria. Across the country, LPG has recorded an unprecedented increase in price by about 240 percent.

Data obtained from the website of the National Bureau of Statistics (NBS) shows that in August, the average price for refilling a 5kg gas cylinder for LPG was N2,215. It rose to N2,397 in September. The price of refilling 12.5kg cylinder also increased from N4,514 in August to N6,164 in September.

The data also showed variation in the prices of the commodity in different states. The data revealed that Cross Rivers ad and Anambra selling 12.5kg at N6,897 and N6,779 respectively were the two states with the highest average price for September.

The two states with the lowest average price for September are Borno and Osun states, the product sold at N5,100 and N5,006, respectively. A visit to a few LPG stations on Tuesday in Ibadan, Oyo state capital reveals that the prices of LPG goes for between N3,050 and N3,200 for 5kg. For 12kg, it ranges between N7,150 to N7,300.

Available information has therefore revealed that the surge in price is a result of the fact that importers of the product have stopped importing it.

According to the Executive Secretary of Nigeria Association of Liquefied Petroleum gas Marketers, Mr Essien, importers stopped importing the commodity because of the introduction of custom duty and the value-added tax now imposed on imported LPG. He claimed that there are other issues and that as long as the marketers are not importing the commodity, local supply will continue to suffer a severe drop.

It is to be noted that over 60 percent of LPG used in the country is imported, less than 40 percent is locally produced. Therefore a halt in import implies that the country is left with less than 40 percent produced locally.

The NLNG supplies LPG to terminals and these terminals sell to the marketers and at times in a day the price can go up by about three times. NLNG is now selling in the region of N11m per 20 metric tones truck with a cumulative daily increase of N300,000 to N500,000 without the imposition of VAT and custom duties,” he said in an interview with Punch.

NLNG stands for Nigeria Liquefied and Natural Gas. It is an independent incorporated joint venture that harnesses Nigeria’s vast Natural Gas (LNG) and Natural gas Liquids (NGLs) for export. Last week’s Tuesday, the company announced that it had decided to cut cooking gas exports to meet domestic demand. Despite this, the price of LNG has continued to increase.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending