Nigeria currently produces 990,000tons of palm oil and is the world’s 5th largest producer of the commodity. Global consumption is expected to grow by 2.7% in 2018 and the world’s leading users are India, Indonesia and the EU. It is primarily used for the manufacture of detergents, margarine, noodles and cosmetics.
Nigeria’s major palm oil manufacturers, Presco and Okomu, have been reporting stellar earnings and have been the poster boys of stockbrokers. The stocks have gained 6.58% in the last three months – with earnings growth of 7.09%. Meanwhile the Bloomberg commodity index has gained 0.11% today. Most notably, LNG, Nigeria’s second most important export commodity saw a price increase of 3.40% to $2.65MBtu.
The attached slides contain a snapshot of recent commodity market movements and burning economic issues.
Enjoy your read.