The Food and Agriculture Organization’s (FAO) value index, which tracks essentially the most globally traded meals commodities, averaged 126.9 factors final month in opposition to 129.7 for February.
A mix of ample provides, subdued import demand and the extension of a deal permitting the secure export of Ukrainian grain through the Black Sea contribute to the drop
The United Nations meals company’s world value index fell in March for a 12th consecutive month, and is now down 20.5 per cent from a report excessive hit one 12 months in the past following Russia’s invasion of Ukraine.
The Food and Agriculture Organization’s (FAO) value index, which tracks essentially the most globally traded meals commodities, averaged 126.9 factors final month in opposition to 129.7 for February, the company stated on Friday. It was the bottom studying since July 2021.
The February studying was initially given as 129.8.
A mix of ample provides, subdued import demand and the extension of a deal permitting the secure export of Ukrainian grain through the Black Sea contributed to the drop, FAO stated. The Rome-based company stated the decline in the index mirrored decrease costs for cereals, vegetable oils and dairy merchandise, which offset rises in sugar and meat costs.
“While costs dropped on the international stage, they’re nonetheless very excessive and proceed to extend in home markets, posing extra challenges to meals safety,” Maximo Torero, FAO’s chief economist stated in a press release.
“This is particularly so in net food importing developing countries, with the situation aggravated by the depreciation of their currencies against the U.S. dollar or the euro and a mounting debt burden,” he added. The FAO cereal value index fell 5.6% month-on-month in March, with wheat registering a 7.1% drop, maize a 4.6% decline and rice easing 3.2 %.
Vegetable oils fell 3.0%, some 47.7% down on the extent the index hit in March 2022, whereas the dairy index was down 0.8%.
By distinction, sugar rose 1.5% to its highest stage since October 2016, hit by considerations over declining manufacturing prospects in India, Thailand and China. The meat value index rose by 0.8%.
Higher Wheat Production
In a separate report on cereals provide and demand, the FAO raised its forecast for world wheat manufacturing in 2023, now pegged at 786 million tonnes — 1.3% beneath the 2022 stage however nonetheless the second largest outturn on report.
“Near-record sown areas are anticipated in Asia, whereas dry situations are impacting North Africa and southern Europe,” FAO said. FAO also raised its forecast for world cereal production in 2022 to 2.777 billion tonnes, just 1.2% down from the previous year. World rice production in 2022/23 was seen at 516 million tonnes, 1.6% below the record 2021/22 harvest.
World cereal utilisation in the 2022/23 period was seen at 2.779 billion tonnes, FAO said, down 0.7% from 2021/22. World cereal stocks by the close of the 2022/2023 seasons are expected to ease by 0.3% from their opening levels to 850 million tonnes.
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