Rome:
World meals costs fell in June for the initially time in 12 months, pushed reduced by declines in vegetable oils, cereals and dairy solutions, the United Nations meals agency stated on Thursday.
The Rome-based FAO also stated in a statement that worldwide cereal harvests would come in at practically 2.817 billion tonnes in 2021, slightly down on its prior estimate, but nonetheless on course to hit an annual record.
The Food and Agriculture Organization’s meals price tag index, which measures month-to-month adjustments for a basket of cereals, oilseeds, dairy solutions, meat and sugar, averaged 124.6 points last month versus a revised 127.8 in May.
The May figure was previously provided as 127.1.
On a year-on-year basis, costs had been up 33.9% in June.
FAO’s vegetable oil price tag index plunged 9.8% in June, partly on the back of a fall in palm oil costs, which had been hit by expectations of output gains in major producers and a lack of fresh import demand. Soy and sunflower oil quotations also dropped.
The cereal price tag index dropped 2.6% in June month-on-month, but was nonetheless up 33.8% year-on-year. Maize costs fell 5.%, partly for the reason that of larger-than-anticipated yields in Argentina and enhanced crop situations in the United States.
International rice costs also fell in June, touching 15-month lows, as higher freight fees and container shortages continued to limit export sales, FAO stated.
Dairy costs dipped 1.% on a month-to-month basis, with all elements of the index easing. Butter recorded the biggest drop, hit by a speedy decline in worldwide import demand and a slight improve in inventories, specifically in Europe.
The sugar index posted a .9% month-on-month acquire, reaching its highest level because March 2017. FAO stated uncertainties more than the effect of unfavourable climate situations on crop yields in Brazil, the world’s biggest sugar exporter, pushed costs up.
The meat index rose 2.1% from May, with quotations for all meat kinds increasing as increases in imports by some East Asian nations compensated for a slowdown in China’s meat purchases.
FAO stated the slight fall in its estimate for world cereal production this year was principally triggered by a sharp reduce to the Brazilian maize production forecast as prolonged periods of dry climate weighed on yield expectations.
Global wheat production prospects also retreated this month, as dry climate in the Near East hurt yield prospects there. By contrast, the forecast for worldwide rice output in 2021 edged up.
The forecast for world cereal utilization in 2021/22 was reduce by 15 million tonnes from the prior month to 2.810 billion tonnes, nonetheless 1.5% larger than in 2020/21.
World cereal stocks by the close of seasons in 2021/22 are now anticipated to rise above their opening levels for the initially time because 2017/18. “Higher maize stocks foreseen in China account for the bulk of this month’s upward revision to world cereal inventories,” FAO stated.
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