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ROME, Italy. (Notimex) .- International food prices fell in June for the first time in 2018, with trade tensions affecting markets, even with declining global production prospects, reported today. United Nations Food and Agriculture Organization ( FAO )
The FAO Food Price Index had an average of 173.7 points in June, 1.3 percent lower than their May level. The decrease is mainly due to lower benchmark prices for wheat, corn and vegetable oils, including those made with soybeans.
The FAO Food Price Index is a measure of the monthly change in international costs of a food basket.
Cereal prices fell 3.7 percent on a monthly basis. Despite the general deterioration in production prospects for major grains, international corn and corn prices have experienced "relatively large declines," reflecting increased trade tensions. On the contrary, the costs of rice have increased.
Oil costs decreased by 3.0% from May, to a minimum level of 29 months. The quantities of palm oil, soybean and sunflower were also reduced
The rise in trade tensions between the United States and China has particularly hampered the export prices of United States, driven by soy.
The FAO Dairy Price Index decreased by 0.9 percent, due to lower cheese prices, reflecting higher export availabilities in the European Union and the United States. in the USA. – more than offset the rise in prices of skimmed milk powder.
The FAO meat price index rose 0.3 percent from May, driven by an increase in sheepmeat values and
The index FAO sugar prices rose 1.2 percent, reversing six consecutive monthly declines, mainly due to concern that the dry climate in Brazil, the world's largest sugar producer and exporter, negatively affects yields and production sugar cane.
FAO has also updated its forecast for this year's global cereal production, now set at two thousand, 586 million tonnes, or 64.5 million tonnes (2.4 percent) less than production. record of 2017.
The new forecast published today in the FAO Information Note on the supply and demand of cereals is 24 million tonnes lower than FAO's forecast last month, reflecting the weaker prospects of wheat production in the European Union and wheat and coarse grains in Russia and Ukraine.
cereals will increase to two thousand 641 million tons in 2018/19.
As the use is expected to exceed new production, global cereal stocks accumulated during the last seasons inco will need to be reduced by approximately 7.0 percent compared to the opening levels of the season.
The ratio of world cereal stocks to their use is expected to fall to 27.7 percent, the first decline in four years – down from 30.6 percent – although it is still well above the historic low of 20.4% recorded during the 2007/08 season.
The reduction in stocks is expected to be greater for maize, while rice stocks are expected to increase for the third year in a row.
For world cereal trade, forecasts indicate that it will remain broadly solid also in 2018/19, close to the near-record level of 2017/18.
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