In its monthly note on economic conditions in WAEMU countries at the end of October 2020, the Bceao analyzed the situation of the raw materials market. The issuing institute informs that the prices of raw materials exported by the countries of the Union broke with their upward trend during the period under review, under the effect of uncertainties related to the surge in Covid-19 infections that weakened global demand.

On the other hand, the prices of imported food products continued on the upward trend. "The prices of the main commodities exported by the countries of the Union show a decline of 1.3%, after a realization of -0.3% in September 2020, due to the intensification of uncertainties concerning the recovery of world demand. The price decreases concern non-energy products (-1.4% after +0.5% in September 2020), accentuated by the decline in the prices of energy products (-0.1% against -6.1% in September 2020)", reveals the Bceao. It adds that the decrease in the prices of non-energy raw materials exported by the countries of the Union concerns cocoa (-6.8% against +4.7%), coffee (-6.2% against +0.5%), gold (-1.1% against -2.4%) and wood (-1.0% against -0.7%).

Price increases noted in rubber (+12.8% against +5.0%), cotton (+6.7% against +2.0%), oils (+3.2% against +3.6%) and cashew nuts (+3.1% against +2.7%) had a moderating effect. Concerns about global demand (falling consumption, falling grinding, surge in Covid-19 cases, saturation of multinational warehouses, etc.) and good production prospects, particularly in Côte d'Ivoire (good weather conditions), have weakened cocoa prices .

On the other hand, the Bceao points out that the acceleration of the economic recovery in China, the world's largest rubber consumer, and the weakness of supplies from Southeast Asian producers, due to heavy rains, have driven rubber prices higher.

Tighter supply for the 2020/21 season, with the downward revision in most producing countries, as well as renewed demand from several major consumer countries such as Pakistan, Bangladesh, Vietnam and China, have had an upward effect on cotton prices .

Oil prices (palm kernel, palm and groundnut oils) have been driven up by the revival of global demand, particularly from Europe and China, in a context where supply is reduced in India, in Indonesia and Malaysia.

The recovery in demand, after a halt following the Covid-19 pandemic, has supported cashew nut prices. Indeed, the majority of processing plants, especially in Vietnam and India, have strengthened their activity leading to an improvement in demand.