New Telegraph

Cocoa price surges 17.57% to $2,455 per tonne

Inflation

 

A bag of 50-kilogram of Garri (yellow) now sells for N15,000 from N12,000

 

 

Dayo Ayeyemi There is a rebound in cocoa prices, having surged 17.57 per cent in the last five weeks to $2,455/metric tonne. This is coming when cocoa crop is currently being hit by disease due to excess rainfall.

 

According to report from the Bismarck Rewane-led Financial Derivatives Company (FDI), approximately 40 per cent of Nigeria’s cocoa output may be at risk from the spread of the fungal black pod disease, which has been thriving under excessive rainfall. “Unfortunately, this coincides with a rebound in cocoa prices which have surged 17.57 per cent in the last five weeks to $2,455/ metric tonne,” the report said.

 

Nigeria cocoa exports stand at $672 million. According to Rewane, Nigeria earned approximately $700million from exporting 280,000 metric tonnes of cocoa in 2019.

 

He added that Cameroon, which used to be a marginal player, is poised to overtake Nigeria as the fourth largest cocoa producer in the world with a projected output of 285,000 metric tonnes in 2019/20.

 

The report noted that Nigeria’s cocoa output was concentrated in the country’s southwest region. “Cameroon’s output confirms the view that the entire southern part of Nigeria (especially the south-east which shares a common border with Cameroon) should have cocoa  yields as high as the south-west.

 

This could potentially double Nigeria’s cocoa output,” the report said. As Cocoa prices increased by 2.39 per cent to $2,400/mt, the report said there was improved global cocoa demand In the same vein, the report noted sugar prices fell by 0.79 per cent to $12.54 per pound amid increased output from Brazil.

 

Also , it said corn prices rose by 0.08 per cent to $327.25/bushel. The rise in prices of corn, it said was driven by increased demand from China. Prices of wheat , according to the report lost 0.81 per cent to $526.50 per bushel on expectations of increased supply from  Russia agricultural commodities. On the outlook, the analysts stated that agricultural prices were being fueled by increased Chinese demand for grains to push prices up.

 

On domestic commodities price movement, a bag of 50 kilogram of garri (yellow) is now selling for N15,000 from N12,000,  while a 50kg bag of rice is selling for N28,000 from N14,000 last year. Also, a 50kg bag of flour is now N12,700 from N10,000, while 50 kg bag of beans (Oloyin) is going for N25,500 from N18, 000. The selling price of tomatoes (50kg) is now N35,000 from N20,000, while pepper (bag) sells for N16,000.

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