From Africa Recovery, Vol.13#1 (June 1999), Briefs page

Commodity prices fell further in first quarter

Prices of sub-Saharan Africa's non-energy commodity exports fell an average 7.5 per cent during the first quarter of 1999, according to the World Bank's April 1999 report, Global Commodity Markets. Falling prices of cocoa (-13.8 per cent), robusta coffee (-12.6 per cent) and sugar (-25 per cent) accounted for the continued downward trend in the sub-Saharan index of commodity prices.

Petroleum prices rose sharply in March on news of an agreement by the Organization of Petroleum Exporting Countries to cut back oil production in the one-year period from April 1999. But average oil prices for the entire first quarter fell slightly because of low prices in January and February.

The World Bank predicts that most commodity prices should begin a slow recovery in second-quarter 1999, following the sharp drops of recent years. But forecasts of slow world economic growth mean demand for commodities may remain weak. Further erosion of commodity prices cannot be ruled out, with metal prices tipped to suffer further declines, according to the Bank. With production of cocoa, coffee and sugar expected to exceed consumption in the near term, their prices also are not expected to recover soon.

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