These were stated in the AFEX 2024 Commodities Outlook Report unveiled yesterday in Lagos. It also forecasts that domestic commodity prices will rise consistently throughout 2024.
The predictions for 2024 global commodity prices suggest a downward trend due to factors such as improved supplies and the expiration of certain trade policies.
The report stated that the direction of the trend could be significantly influenced by numerous factors, each capable of either posing a downside or upside risk to commodity prices.
The report further stated that key export commodities like cocoa and sorghum are projected to rise by 50 per cent and 20 per cent respectively, underpinned by declined production.
Other key consumption commodities like maize and paddy rice are projected to rise by 25 per cent and 40 per cent respectively, despite a four per cent projected increase on production of paddy Rice.
AFEX, however, advocated the urgent need to enhance domestic agricultural production, streamline trade policies and establish strategic reserves to cushion market volatility and ensure food security.
The report noted that the Nigerian commodities market faced a trickle-down effect of inflation and economic reforms. On the global scale, the report stated that the commodities market was marked by turbulence, owing to global shocks across energy scarcity, geopolitical tensions, financial crises and more.
Speaking at the event, the Vice President, Financial Markets, AFEX, Oluwafunto Olasemo, said the outlook was an indispensable component of the commodities market, dictating trading flows and movement across the physical market and secondary-market players.
She said the commodities market will this year see a complex balance amidst geopolitical, economic and environmental factors, which will, on one hand, demand continual monitoring and strategic adaptation and, on the other, spur vigilance on the part of market stakeholders and policymakers.
