Dear Subscriber,

A bag of sweet potatoes (50kg) rose by 9.09% to ₦22,000 in March

The price of a 50kg bag of sweet potatoes rose to ₦22,000 in March from ₦20,000 in February. Compared to December 2022, its price is up 37.5%% (₦16,000). The price increase is due to supply challenges brought on by seasonality and farmers’ insistence on cash payments due to the lingering naira scarcity. Sweet potatoes are planted in March–April and harvested in August–November.

Swings in the US dollar to influence copper prices in the coming weeks

Copper has been the world’s best-performing industrial metal this year, with its global price reaching a peak of $9002.50/mt today. The rising price of copper globally has been supported by the weak US dollar. After reaching a 20-year high in September last year, the US dollar has weakened against a basket of major currencies due to recession fears and the recent financial tremor. The depreciation of the US dollar makes its priced assets cheaper, thereby increasing the demand for such commodities. It is also expected that a rebound in economic activity in China, the world’s largest consumer of copper, will support a further spike in the price of the commodity in the near term.

Strong global demand nudges oil prices 

In line with the market forecasts of an increase in oil demand, US crude stockpiles dropped by 7.5 million barrels in the week ended March 24, owing to a surge in global demand. This has intensified supply concerns following Iraq’s suspension of oil exports through Turkey and expectations that OPEC will maintain its supply cut in its meeting on April 3. Consequently, the price of Brent has risen to a two-week high of $79.22pb after falling below $73pb in the previous week. 

In the download, the FDC Think Tank breaks down the implication of these issues and more on the Nigerian economy.

Enjoy your read!