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Global wheat prices ease due to the extension of Russia-Ukraine grain deal 

In the past two weeks, global wheat prices plunged by 6% to $613.50/bushel owing to the two-month extension of the Russia-Ukraine grain deal. Earlier in the month, Russia had threatened to halt wheat exports through the Black Sea, which kept wheat prices slightly elevated. However, year-on-year, wheat prices plunged 48.9%. The fall in wheat prices is expected to reduce Nigeria’s wheat import bill by approx. $162mn, year-to-date. This will further moderate the impact of imported inflation on the general price level.

Weak Chinese demand weighs on global lithium prices 

In the global market, lithium prices steadily declined for the past six months to $32,481/tonne in May from an all-time high of $84,880/tonne in November 2022. The persistent decline in its price has been attributed to weaker-than-expected demand from China following the removal of subsidies on electric vehicles in China.

Investors expect additional downward pressure on lithium prices in the coming weeks on forecasts of improved supply from China and a reduction in global supply deficits to 30,000 tonnes of lithium carbonate equivalent (LCE) in 2023 from 76,000 tonnes in 2022.

These and other burning economic issues were discussed on the Business Morning programme on Channels TV today.

Enjoy your read!