The Prices of major grain commodities in Nigeria will experience a bullish trend this year driven by the carry-on effect of the inflationary pressure on food prices that marked 2021, says AFEX, a leading commodities market player, in its annual commodities outlook report for the 2022 crop production and market year.
The report titled, “Annual Commodities Review & 2022 Outlook,” asserted that the combination of a rise in energy prices in the global market, which ultimately results in a hike
in farming inputs, such as fertilisers; increased demand that has surpassed supply levels across
the country; FX rate deterioration; market uncertainty exacerbated by the fact that 2022 is
a pre-election year; hoarding activities by traders in expectation of higher valuations, are dominant factors that would lead to a significant surge in the prices of grains during the new
2021/2022 trading season.