FAO Aug food price index down marginally on mo as cereal prices fall
This story was originally published at 18:30 IST on 6 September 2024
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NEW DELHI – The UN Food and Agriculture Organization's food price index fell to 120.7 points in August from 120.8 a month ago as a decrease in prices sugar, meat, and cereals outweighed increases in those for vegetable oils and dairy products. The food price index in August was 1.1% lower than a year ago and 24.7% below its peak of 160.3 points touched in March 2022, FAO said in a report.
The cereal price index averaged 110.1 points in August, down 0.5% from a month ago and 11.9% from a year ago. Global wheat export prices fell amid sluggish international demand and strong competition among exporters, especially from competitively priced Black Sea supplies, the report said.
However, global maize prices firmed slightly, majorly due to concern over yield amid heatwaves in the European Union and parts of the US. Tighter supplies in Ukraine, with a downward revision to the country’s production forecast, also supported prices. The FAO All Rice Price Index increased by 0.6% in August, as non-Indica rice prices rose amid seasonal tight supply and currency appreciations of some exporting countries against the dollar, it added.
The vegetable oil price index rose 0.8% on month to 136.0 points in August, the highest level since January 2023. Higher global quotations for palm oil more than offset lower soybean, sunflower, and rapeseed oil quotations, the report said. The global palm oil prices rose for the third consecutive month on lower output.
By contrast, global soyoil prices declined amid prospects of ample global soybean production. Prices of sunflower and rapeseed oils also fell due to a slowdown in global demand and harvest pressure of rapeseed in Canada, the report said.
The dairy price index was 130.6 points in August, up 2.2% on month and 14.2% on year, the agency said. Among the dairy basket, milk prices rose the most due to a a surge in import demand for spot supplies and tight inventories in major producing regions. Butter prices reached an all-time high amid increased demand for near and long term deliveries and some uncertainty over the adequacy of milk supplies in Western Europe, the report said. Meanwhile, world cheese prices increased amid limited inventories and lighter cheese production in Europe, it added.
The meat price index was at 119.5 points in August, down 0.7% from a month ago but 3.7% up on year. Poultry meat prices fell in August, reflecting the lingering effects of the Newcastle disease-related voluntary export suspension on Brazilian price quotations. World pig meat prices decreased for the second consecutive month due to lacklustre import demand amid ample exportable availability in major producing regions, it added.
The sugar price index fell 4.7% on month and 23.2% on year to 113.9 points in August, the lowest level since October 2022. Prices fell amid improving production outlook for Thailand. Lower international crude oil prices also exerted downward pressure on prices. End
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Reported by Afra Abubacker
Edited by Akul Nishant Akhoury
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