The Central Bank of West African States (BCEAO) has published its Economic Outlook Note concerning the countries of the West African Economic and Monetary Union (WAEMU). This West African organization, created in 1994, aims to strengthen the economic competitiveness of its member states.
The note indicates that in May of this year, commodity prices decreased by 1.2%, as a result of a combination of increased supply and weakened demand, notably from China (for example, in oil and palm oil).
Leading this downward trend are energy commodities, with a decrease of 12% for natural gas and 10% for oil. The prices of certain food products have also experienced a noticeable decline, such as palm oil (-7%) and cashew nuts (-1.2%).
However, some commodities are not following this trend. For instance, coffee prices have surged by 7%, primarily due to market concerns regarding the risk of El Niño and the extreme drought it could cause in producing countries like Vietnam or Indonesia. The fear of extreme weather phenomena also affects other staple commodities such as sugar, cocoa, or cotton.
Source : financialafrik.com