Developments in world commodity markets with respect to Nigeria’s agricultural commodities during the second quarter of 1985

Abstract

This article reports developments in world commodity with respect to Nigeria’s agricultural commodities during the second quarter of 1985. The report indicates that the rising trend in world prices of some of Nigeria's agricultural produce in the first quarter of 1985 was reversed during the second quarter when a general decline in the prices of most of the commodities covered by the report was recorded. The all-commodities price index fell by 9.8 per cent from 234.0 (1975=100) in the first quarter to 211.0 in the second quarter. This level was also about 16.0 per cent below the level in the corresponding quarter of 1984. Except groundnut, palm kernel, palm oil and rubber for which price increases were observed, the price decline affected all the commodities. The general weakness of the markets was traceable to a number of factors foremost among which were the bumper harvests during the period particularly with respect to cocoa and cotton lint, and the appreciation of sterling, a major trading currency, against other currencies during the review period.