The Cereal Price Index declined by almost two per cent over November. Ongoing harvests in the southern hemisphere boosted wheat supplies for export, while solid competition from Brazil drove down maize prices. However , it averaged 143. seven points last year – greater than 14 per cent higher than the common value over 2021. However , rice prices increased, largely bolstered by “Asian buying and currency appreciation against the United States dollar regarding exporting countries. ”
Guard against food insecurity
“International quotations for palm, me llaman, rapeseed and sunflower seed oils all declined final month, driven by demure global import demand plus prospects of seasonally increasing soy oil production within South America as well as declining commodity future trading prices, ” said FAO. The lower FFPI in December was led by a decrease in the Vegetable Price Index, which dropped 6. 7 per cent from the previous month, achieving its lowest level considering that February 2021. The Dairy Cost Index rose by one 2 per cent in December, subsequent five consecutive months of declines. FAO attributed this to higher international cheese costs, reflecting tightening market situations, though international quotations designed for butter and milk powder declined.
The Sugar Cost Index also jumped second . 4 percent from November, which was mostly due to worries over the impact of undesirable weather conditions on crop produces in India as well as sugarcane crushing delays in Thailand and Australia. The particular FFPI averaged 132. four points last month, that is one per cent lower than the prior December. The UN agency has published its latest Food Price Index (FFPI) which tracks the monthly international costs of cereals, vegetable essential oil, dairy, meat and sugar.
Declines in December
“It is important to remain vigilant and keep a strong focus on mitigating global food insecurity given that entire world food prices remain at elevated levels, with many staples near record highs, along with prices of rice maximizing, and still many risks connected with future supplies, ” he added. This directed the International Monetary Fund ( IMF ) to adopt a “Food Shock Window”, inspired by the agency. World costs of wheat and maize reached record highs last year and the average value of vegetable oils hit a new report, while individual indexes regarding dairy and meat prices also marked their top full-year levels since 1990. Meanwhile, this halloween meat prices increased, generally supported by solid pre-Christmas demand, particularly in European countries.
Christmas boost in Europe
Final month also saw 1 . 2 per cent downward glide in the Meat Price Index. For example , bovine meat prices were affected by “lacklustre demand for medium-term supplies”, said FAO, whereas chicken costs were pushed down due to “more-than-adequate export supplies”. The FFPI was “notably higher” in 2022 than in 2021, which on top of large increases that will year sparked “significant strains and food security concerns” for poorer food-importing nations, said FAO. “Calmer food commodity prices are welcome after 2 very volatile years, ” said FAO Chief Economist Maximo Torero.
