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Brent lost on prospects that U.S. rate cuts could be delayed

Today, oil prices slipped 0.58%, reaching $82.48pb. The fall in Brent price is due to speculation that U.S. interest rate cuts may be delayed to the second half of the year, offsetting the gains from the previous session, which traded at $82.96pb. In the short term, the price of Brent is expected to see an upward trend, driven by OPEC+ output cuts and a boost in oil demand from China.

Global price of soybeans eased near a three-year low

Global soybean prices plunged by 24.72% to $11.48/bushel in February 2024 from $15.25 a year ago. The decline in the global soybean price was supported by increased global supply from major producers like Brazil, the U.S., and Argentina, coupled with weakened demand from the top importer, China. Conversely, Nigeria, the second-largest soybean producer in Sub-Saharan Africa, experienced a significant 177% spike in domestic soybean prices, reaching N64,000 from N23,100 in March 2023. Notably, this surge is attributed to an increase in cross-border smuggling of farm produce out of Nigeria as well as increased local demand for Soybean derivatives such as Soymilk due to the cross-elasticity effect.

These and other burning economic issues were discussed on Channels TV Business Morning programme by FDC’s M.D. Mr. Bismarck Rewane.

Click the link  to watch the video.