POST Online Media Lite Edition



 

Benchmark FAO Food Price Index shows dip in international prices of cereals, vegetable oils and sugar

Christian Fernsby |
The barometer for world food commodity prices declined slightly in June for the third consecutive month, the Food and Agriculture Organization of the United Nations (FAO) reported.

Article continues below




The FAO Food Price Index averaged 154.2 points in June 2022, down 2.3 percent from May. The Index, which tracks monthly changes in the international prices of a basket of commonly-traded food commodities, remained, however, 23.1 percent higher than in June 2021.

The drop in June reflected declines in the international prices of vegetable oils, cereals and sugar, while dairy and meat prices increased.

The FAO Cereal Price Index averaged 166.3 points in June, down 4.1 percent from May, but still 27.6 percent above its June 2021 value. International wheat prices fell by 5.7 percent in June but remained 48.5 percent above their values a year ago. The decline in June was driven by seasonal availability from new harvests in the northern hemisphere, improved crop conditions in some major producing countries, and higher production prospects in the Russian Federation. International coarse grain prices also fell by 4.1 percent but were still up 18.4 percent from their year-earlier values. World maize prices fell by 3.5 percent month-on-month due to increased seasonal availabilities in Argentina and Brazil and improved crop conditions in the United States of America.

The FAO Vegetable Oil Price Index averaged 211.8 points in June, down 7.6 percent month-on-month. World palm oil prices declined on seasonally rising output of major producing countries and prospects of increasing supplies from Indonesia. Meanwhile, world sunflower and soy oil prices declined due to subdued global import demand in the wake of rising costs.

The FAO Sugar Price Index averaged 117.3 points in June, down 2.6 percent from May, marking the second consecutive monthly decline and reaching its lowest level since February, influenced by good global availability prospects. Slowing global economic growth also weighed on international sugar demand and prices.

“Although the FAO Food Price Index dropped in June for the third consecutive month, it remained close to the all-time high of March this year. The factors that drove global prices high in the first place are still at play, especially a strong global demand, adverse weather in some major countries, high production and transportation costs, and supply chain disruptions due to COVID-19, compounded by the uncertainties stemming from the ongoing war in Ukraine,” said Máximo Torero Cullen, FAO Chief Economist.

Meanwhile, the FAO Meat Price Index averaged 124.7 points in June, up 1.7 percent from May, setting a new record high and exceeding by 12.7 percent its June 2021 value. World prices across all meat types increased, with those of poultry meat rising sharply, reaching an all-time high, underpinned by the continued tight global supply conditions impacted by the war in Ukraine and the Avian Influenza outbreaks in the Northern Hemisphere.

The FAO Dairy Price Index averaged 149.8 points in June, up 4.1 percent from May and 24.9 percent above its June 2021 value. In June, international prices of all dairy products increased. Cheese prices rose the most, mainly underpinned by a surge in import demand for spot supplies amid market concerns over supply availabilities later in the year. World milk powder prices increased on strong import demand and persistent global supply tightness.

FAO’s forecast for global cereal production in 2022 was raised by 7 million tonnes in July from the previous month and is now pegged at 2 792 million tonnes, according to the new Cereal Supply and Demand Brief, also released today. This is still 0.6 percent short of the world output in 2021.

The month-on-month increase predominantly rests on a 6.4-million-tonne upward revision made to the coarse grain production forecast, with the world output seen reaching 1 501 million tonnes in 2022, only 0.5 percent below the 2021 outturn.

The forecast for world cereal utilization in 2022/23 has also been lifted, up 9.2 million tonnes to 2 797 million tonnes, but is still 1.7 million tonnes (0.1 percent) below the 2021/22 level, mostly reflecting expectations of lower feed use.

At 854 million tonnes, FAO’s forecast of world cereal stocks at the close of seasons in 2023 is up 7.6 million tonnes from the previous month but still points to a year-on-year contraction of 0.6 percent (5.0 million tonnes).

At this level, the global cereal stock-to-use ratio would fall from 30.7 percent in 2021/22 to 29.8 percent in 2022/23.

FAO’s latest forecast for world trade in cereals in 2022/23 stands at 468 million tonnes, up 4.8 million tonnes from last month but representing the lowest level in three seasons and a decrease of 11.4 million tonnes (2.4 percent) from the 2021/22 volume. Accounting for the bulk of the decline, trade in coarse grains is forecast to contract by 4.1 percent (9.5 million tonnes) in 2022/23 (July/June) from the 2021/22 estimated level, largely driven by war-related losses of maize and barley exports from Ukraine.

FAO assesses that 46 countries, including 33 in Africa, 10 in Asia, two in Latin America and the Caribbean and one in Europe are in need of external assistance for food, according to the latest Crop Prospects and Food Situation Report.

FAO’s forecast for aggregate cereal production of the group of Low-Income Food-Deficit Countries (LIFDCs) in 2022 is pegged at 187.8 million tonnes, a marginal increase compared to the five-year average and the previous year, the report said.


What to read next

FAO Food Price Index eases in April
UN Food Outlook: World’s most vulnerable paying more for less food
Global food prices fall for first time in 12 months

U.S.: Lingering rainfall from Ian remnants in Mid-Atlantic, major to record river flooding in Florida

 
Post-Tropical Cyclone Ian has fully dissipated overnight but the extratropical remnants of the storm will continue to bring widespread showers and storms to the Mid-Atlantic and central Appalachians due to onshore flow on the northern side of the system.
 
 

Latest

Teamsters strike Sysco Boston
5 killed, injured in Mexican navy helicopter crash incident
Spirit Airlines flight makes emergency landing in Baltimore
Lula favorite in Brazil's elections, Bolsonaro sends dangerous message

NEWS

Ex-advisor to Pentagon chief: U.S., UK might stand behind Nord Streams incident, not Russians and Germans

5.9 magnitude earthquake strikes southwestern Japan
Joint action in Brazil seizes 46 tons of illegal pesticides and fertilizers
Spain dismantled drug trafficking organization that operated on coast of Huelva
Pacific Ocean set to make way for world's next supercontinent
Space surveillance telescope begins operations in Australia
 

BUSINESS

75 percent of UK voters thinks Truss and Kwarteng lost control of economy

PM Modi launches 5G services in India
Huge rise in electricity bills in UK from today
Gazprom to ship 41.7 mcm of gas to Europe via Ukraine on Saturday
Arizona’s lowest flat tax in nation to take effect next year
U.S. oil and gas rig quarterly growth slowest in two years
 

Trending Now

Ex-advisor to Pentagon chief: U.S., UK might stand behind Nord Streams incident, not Russians and Germans

Joint action in Brazil seizes 46 tons of illegal pesticides and fertilizers

Spain dismantled drug trafficking organization that operated on coast of Huelva

Pacific Ocean set to make way for world's next supercontinent


POLITICS

U.S. to provide $810 million to prevent China's aggressive stance in Pacific

Bulgaria, Azerbaijan to expand cooperation on gas supply
Finland considering building fence on its border with Russia
Moldovan president asks EU for additional financial assistance due to energy shortage in Moldova
UK Government support for energy bills begins for households and businesses
Illinois invests $6 million in meat and poultry supply chain capital grant program
 

Today We Recommend

Ex-advisor to Pentagon chief: U.S., UK might stand behind Nord Streams incident, not Russians and Germans


Highlights 

Finland considering building fence on its border with Russia

Maple Leaf Foods completes construction of its new world-class London, Ontario poultry plant, to hire 600+

Highest since 1997: Inflation hits record 10% in 19 EU countries using euro


COMPANIES

Gazprom supplies gas for Europe through Ukraine equaling 41.7 mln cubic meters via Sudzha

Nord Stream operator waiting for permits to start assessing pipeline damage
Maple Leaf Foods completes construction of its new world-class London, Ontario poultry plant, to hire 600+
Ingetrac gets new order for 80 converters for 62 trains to Germany and Serbia
Virta Health selected Colorado for its new headquarters
Winar Connection establishing operations in Spartanburg County, South Carolina
 

CAREERS

Kimberly Nelson named president of Kemin Nutrisurance

Discovery Life Sciences appoints Suso J. Platero as chief scientific officer
Sandeep Johri joins LambdaTest board
Skyresponse appoints Mats Berthem as new CEO
Phathom Pharmaceuticals appoints James Toppe to board
Industrial Logistics Properties Trust appoints Brian E. Donley as CFO
 

ECONOMY

Dutch inflation jumps to record 17.1 pct

Italy's annual inflation in September hits highest in nearly 37 years
UK economy still below pre-pandemic size
August 2022: Industrial producer prices in France rose by 2.3% over a month, by 27.7% over a year
August 2022: No employment growth in Germany for the first time in 18 months
UK house prices post 9.5% gain
 

EARNINGS

CarMax Q2 revenues $8.1 billion

Rite Aid Q2 net loss $331.3 million
NIKE Q1 2023 revenues $12.7 billion
Morrisons Q3 revenue up 4.5%
S&W Seed core revenue $71.4 million
Cal-Maine Foods Q1 2023 sales increased 103%
 

OP-ED

Micromanaging is the worst enemy of efficiency and teamwork

Niger set to monetize massive gas reserves through Saharan natural gas pipeline
Putting the brakes on EV folly that choked the market
Oil discovery in Kavango Basin may mean huge benefits for Namibians
Cape Town and Dubai battle over Africa's energy future
Is America going to lose its superpower status?
 

AGRIFISH

Avian flu detected in Portuguese capital

Germany says mass fish deaths in Oder river a man-made disaster
New Zealand found additional M. bovis infection inside controlled area notice boundary
Michigan confirms West Nile virus in Saginaw County domestic bird
Funds available to Minnesota's livestock farmers to update livestock operations
Virginia launches Black Vulture depredation permit pilot program to assist Commonwealth’s livestock producers
 

LEADERSHIP

Cybervetting can have pronounced impact on workforce by broadening discrimination

Female managers pay fairer
Pitch quality of CEO voices rests entirely on gender
Employee turnover costs more than you think
51% of supply chain leaders increased number of network locations
If company overcomes post-IPO innovation slump, it will survive longer
 

CRIME

Barclays agrees to $361 million settlement to resolve SEC charges relating to over-issuances of securities

Justice department announces total distribution of over $4 billion to victims of Madoff Ponzi Scheme
Bank of Ireland fined EUR100.5 million over tracker mortgage dispute
11 financial institutions to pay over $710m for recordkeeping and supervision failures, unapproved communication
Biogen to pay $900 million to settle allegations related to improper physician payments
SEC charges Oracle second time for violations of foreign corrupt practices act
 

Magazine

TRAVEL

Sanctuary Cap Cana opens in Dominican Republic

Skate with Olympic star Patrick Chan at Vancouver rinks
Annual Peanut Festival in Aubrey, Tx. is celebration of past and joy of present
Anantara Grand Hotel Krasnapolsky Amsterdam opens
Grand festive season in India starts with Navratri
300 artists from 65 nations will participate in Qatar International Art Festival
 

SEA, LAND, AIR

2023 Ford F-Series Super Duty, built like never before

Caterham Super Sevens, true joy of ride
New Ford Mustang brings digital cockpit, new engines and style
Ram 1500 Limited Elite Edition joins lineup for 2023
2023 GMC Canyon AT4X, new midsize truck
Shelby Code Red, $210,000+ to upgrade your Ford Mustang
 

DESIGN

Noritake tableware, to pass down to the new generation as an heirloom

Tecnografica wallcoverings from the land of ceramic
Poliform, kitchens for extraordinary homes
Luxury vinyl tiles, ideal combination of everything
LED lamps, long-lasting light for every space in your home
Clean and luxurious men's watches
 

GADGETS

Technics SL-1200, the legend keeps spinning

Leica S3, made in Germany for great pictures
Sennheiser HD 300 PROtect, pro headphones that protect your ears
HP Dragonfly Folio G3, very very good laptop for business users
Nokia PureBook Fold and PureBook Lite, flexibility and stylish design
Tascam 202MKVII, professional dual cassette deck
 

HEALTH

Singapore authorises Pfizer COVID-19 vaccine for children aged 6 months through 4 years

Russia’s Vector Center developing mRNA coronavirus vaccine
Shionogi says COVID pill resolves Omicron symptoms faster
Moderna gets EMA review for Omicron BA.4/BA.5 targeting booster shot for aged 12, above
Pharming announces FDA acceptance for priority review of its new drug application for leniolisib
Fujifilm receives regulatory approval for its latest generation Endoscopic Ultrasound endoscope (EG-740UT)
 

MEANTIME

New evidence for liquid water beneath south polar ice cap of Mars

Potential first traces of the universe's earliest stars
New archaeology dives into mysterious demise of Neanderthals
NASA conducts first planetary defense test mission
Mysterious ripples in the Milky Way were caused by a passing dwarf galaxy
Astronomers detect hot gas bubble swirling around the Milky Way's supermassive black hole