Exchange predicts decline in grain production
Associated Foreign Exchange (AFEX) has predicted a decline in the production of grain commodities this year, following the impact of flooding, devaluation of the naira, high logistics, and the social-political situation in Nigeria.
In its Commodity Outlook for 2023 Report, the body said the observed reasons would keep commodity prices at historically high levels amid concerns of an impending food crisis and global recession.
Head, Market Data and Research at AFEX, David Ibidapo, said the forecast was to guard against the looming global shock.
He said: “Every year, AFEX reviews Nigeria’s commodity market and gives an in-depth analysis of the outlook for the new year. In the last two to three years, we have seen the commodity market susceptible to global shocks as evidenced by the COVID-19 pandemic’s impact and the ongoing Russia-Ukraine crisis on supply chain and food prices.
“It’s then critical to monitor the market closely and give an objective picture of these agricultural commodities, which would bring transparency and clarity in a bid to ameliorate the impact of the next global shock.”
He attributed the surge in prices to the low production volume of maize, paddy rice, sorghum, and cocoa.