Also, according to the United Nations Food and Agriculture Organization’s price index, which follows the most traded foods across the globe, through June has been steady at 120. Six points were outlined in the new report presented on Wednesday, October 14.
The FAO index touched a low of 167.4 points in February as food prices fell from a record high of 250.2 in March 2022 due to the war between Russia and Ukraine.
The index for June was 2. Sales decreased 5% from the previous year to 24. They even fell 8% below their high of 2022.
Cereal prices fell 3. 0% on the previous month. The FAO predicted that production had slightly increased in some of the major exporting countries, like Kazakhstan and Ukraine. Maize export prices also declined because the yield in Argentina and Brazil was anticipated to be greater than forecasted earlier.
On the other hand, the dairy and sugar index increased by 1. 2% and 1. 9% and 9%, respectively, in June from May. The sugar index was somewhat supported by downside risks in Brazil’s May crop in the same month it set a record.
This was coupled with increased vegetable oil prices by 3. 1% due to the increase in quotations for palm, soy, and sunflower oils, whereas the quotations for rapeseed oil were almost constant. Meat prices were more or less stagnant mainly due to a decline in the international price for poultry meat, while there was a marginal rise in the ovine, pig, and bovine markets.
FAO, in its own report, also issued a higher projection for world cereal output in 2024, 7 % higher than the previous estimate. 9 million metric tons (0. 3 %), ranked 2. 854 billion tons transportation marks a new record and is predicted to be a tad higher and reach 854 billion tons in 2023, which would be an all-time high. This was because coarse grains’ outlook brightened due to the sharper anticipated yield of Maize in Argentina and Brazil.
