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The FAO Food Price Index drops in June for the first time in 2018
Despite the general deterioration in production prospects, there have been "relatively sharp declines" in maize and wheat prices
International food prices fell in June for the first time in 2018, while trade tensions hit the markets, even with prospects of declining global production.
The FAO Food Price Index averages 173.7 points. June, down 1.3% from its 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 price of a basket of food products.
The FAO cereal price index decreased by 3.7% 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, rice prices rose
The FAO vegetable oil price index decreased by 3.0% compared to May, reaching its minimum level of 29 months. Prices of palm, soybean and sunflower oils also fell.
The rise in trade tensions between the United States and China has particularly hampered US export prices, driven by soybeans. The FAO dairy product price index decreased by 0.9% due to lower cheese prices reflecting higher export availabilities. in the European Union and the United States of America – more than offset the rise in prices of skimmed milk powder.
The FAO meat price index rose 0.3% from May, the FAO sugar price index rose 1.2%, reversing six consecutive monthly declines, mainly due to concern over imports of mutton and pork. The fact that the dry climate in Brazil – the world's largest sugar producer and exporter – negatively affects yields and sugar cane production.
FAO has also updated its forecasts for world cereal production. this year, set at 2,586 million tonnes, or 64.5 million tonnes (2.4 percent) below the record production in 2017.
The new forecasts published in the information note of FAO on supply and demand for cereals are 24 million tonnes lower than FAO's forecast last month, reflecting lower prospects of wheat production in the EU and wheat and wheat. coarse grains in the Russian Federation and Ukraine.
Global utilization of cereals is expected to increase to 2 641 million tonnes in 2018/1919.
As it is expected that utilization will exceed new production, global grain stocks have accumulated The last five seasons will need to be reduced by about 7% from season-opening levels . The ratio of world grain stocks to their use is expected to fall to 27.7%, the first decline in four years – down from 30.6%, although 20.4% recorded in the 2007 season / 08
Stock reduction is expected to be larger for maize, while rice stocks are expected to increase for the third year in a row.
Global cereal trade is forecast to remain broadly solid in 2018/19, close to the near-record level of 2017/18.
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