Food and Agriculture Organization (FAO) Food Price Index drops for the sixth consecutive month – African Business

The gauge for world meals commodity costs declined for the sixth month in a row in September, with sharp drops within the quotations for vegetable oils greater than offsetting increased cereal costs, in response to a brand new report launched right now by the Meals and Agriculture Group of the United Nations (FAO).

The FAO Food Price Index averaged 136.3 factors in September, down 1.1 % from August whereas remaining 5.5 % increased than its worth a yr earlier. The Index tracks month-to-month modifications within the worldwide costs of a basket of generally traded meals commodities.

The FAO Vegetable Oil Value Index drove the decline, lowering by 6.6 % over the month to succeed in its lowest stage since February 2021. Worldwide quotations for palm, soy, sunflower and rapeseed oils had been all decrease. Lingering heavy inventories of palm oil, coinciding with seasonally rising manufacturing in Southeast Asia, pushed palm oil costs down. Increased soy oil export availabilities in Argentina, elevated sunflower oil provides from the Black Sea area and decrease crude oil costs additionally contributed to the drop on this subindex.

The FAO Cereal Value Index, against this, rose 1.5 % from August. Worldwide wheat costs rebounded by 2.2 %, linked to issues concerning dry crop circumstances in Argentina and america of America, a quick tempo of exports from the European Union amid excessive inside demand and heightened uncertainty in regards to the Black Sea Grain Initiative’s continuation past November.  World maize costs had been principally secure, as a powerful United States greenback countered strain from a tighter provide outlook linked to downgraded manufacturing prospects in america of America and the European Union. The FAO All-Rice Value Index rose by 2.2 %, largely in response to export coverage modifications in India and issues in regards to the influence of the extreme flooding in Pakistan.

The FAO Dairy Value Index dropped by 0.6 % within the month, to an excellent extent reflecting the influence of the weaker euro versus america greenback, together with market uncertainties and bleak international financial development prospects.

The FAO Meat Value Index declined by 0.5 %. World bovine meat costs fell on excessive export availabilities from Brazil and elevated cattle-liquidation in some producing nations, whereas poultry meat costs inched down as a consequence of subdued import demand. Against this, world pig meat costs rose as a consequence of a provide shortfall of ready-to-slaughter animals within the European Union.

The FAO Sugar Value Index was down 0.7 % through the month of September, principally associated to good manufacturing prospects in Brazil together with decrease ethanol costs and foreign money motion results.

Additional particulars can be found here.

Decrease forecasts for 2022/23 international cereal output, utilization and commerce

FAO right now additionally revealed the most recent Cereal Supply and Demand Brief, which additional lowered the worldwide cereal manufacturing forecast for 2022, now pegged at 2 768 million tonnes,  1.7 % beneath the 2021 outturn.

World coarse grain output is forecast at 1 468 million tonnes, down 2.8 % year-on-year, due largely to antagonistic crop circumstances in america of America. World rice manufacturing is forecast at 512.8 million tonnes, down 2.4 % from its all-time excessive reached in 2021, however nonetheless an above-average crop. Downward revision to rice output since September mirror summer time dryness and excessive temperatures in China and flooding in Pakistan. FAO raised in September its international wheat manufacturing forecast to 787.2 million tonnes, up 1.0 % from the earlier yr and on monitor to mark a report excessive, as a consequence of better-than-expected yields within the European Union and the Russian Federation.

World cereal utilization over 2022/23 is now forecast to say no by 0.5 % from the earlier season to 2 784 million tonnes, with the discount principally reflecting decreased feed use.

World cereal shares on the shut of the 2023 seasons are forecast to contract by 1.6 % beneath their opening ranges, all the way down to 848 million tonnes. The world cereals stocks-to-use ratio is anticipated to drop to 29.7 % in 2022/23 from 31 % within the earlier yr, nonetheless comparatively excessive from a historic perspective.

World commerce in cereals is predicted to say no by 2.4 % in 2022/23 (July/June) from the previous advertising and marketing season, with foreseen contractions in commerce of all main cereals. Amongst different elements, the results of the warfare in Ukraine and the energy of america greenback are seen contributing to this decline.

Additional particulars can be found here.

45 nations want exterior help for meals

45 nations around the globe, together with 33 in Africa, 9 in Asia, two in Latin America and the Caribbean and one in Europe, are in want of exterior help for meals, in response to the most recent Crop Prospects and Food Situation report, a quarterly publication by FAO’s World Data and Early Warning System (GIEWS).

Multi-year droughts have engendered a grave meals insecurity state of affairs in East Africa, with famine anticipated in components of Somalia except humanitarian help is scaled up. Excessive inflation charges, difficult macroeconomic environments and depreciating currencies are aggravating meals insecurity circumstances in low-income meals deficit nations.

The report additionally forecasts that cereal manufacturing in Low-Earnings Meals-Deficit International locations (LIFDCs) in 2022 will decline by 0.4 % from 2021.

Distributed by APO Group on behalf of Meals and Agriculture Group (FAO).