Africa: Downward Slide in Global Food Prices Continues – FAO read full article at worldnews365.me

International meals costs dropped for the tenth consecutive month in January, the Meals and Agriculture Group of the United Nations (FAO) mentioned on Friday.

Value indices for vegetable oils, dairy and sugar drove the January decline, the UN meals company mentioned, issuing two new studies on meals manufacturing expectations.

The FAO food price index fell 17.9 per cent under its all-time peak, reached in March 2022 following Russia’s full-scale invasion of Ukraine.

The downward pricing pattern was helped partially by a pivotal agreement signed in July to unblock Ukraine grain exports amid the continued battle.

Monitoring month-to-month modifications within the international costs of generally traded meals commodities, the newest index averaged 131.2 factors in January, falling 0.8 per cent since December. FAO reported small value decreases on its newest meat and sugar indices.

“Strong harvest progress in Thailand and favourable weather conditions in Brazil outweighed the impact on sugar prices due to concerns over lower crop yields in India, higher gasoline prices in Brazil, which support demand for ethanol, as well as the Brazilian real’s appreciation against the United States dollar,” the report said.

On the identical time, vegetable oil costs fell 2.9 per cent, stemming from subdued international import demand for palm and soy oils and ample export availabilities of sunflower seed and rapeseed oils. Cereal costs remained primarily unchanged since December.

Wheat manufacturing soars

Worldwide wheat costs fell for the third consecutive month. The two.5 per cent lower pertains to Australia and Russia outpacing manufacturing expectations. In the meantime, barely larger international maize costs have been rooted in a robust demand for exports from Brazil and issues over dry circumstances in Argentina.

Vacation cheese increase

Cheese grew to become barely costlier regardless of dairy costs averaging 1.4 per cent decrease than in December, which got here after lighter demand from main importers and elevated provides from New Zealand. Forex actions drove the worth improve alongside a restoration in meals companies and retail gross sales in Western Europe following the New 12 months vacation.

International rice costs climbed 6.2 per cent from December, triggered by tighter availabilities. Different elements included robust native demand in some Asian exporting international locations and change charge actions.

New cereal predictions

In its newest Cereal Supply and Demand Brief, FAO expects worldwide commerce in cereals within the 2022/23 interval to say no by 1.7 per cent from the earlier yr’s document stage, to 474 million tons.

Early indications level to probably space expansions for winter wheat cropping within the northern hemisphere. Nevertheless, larger prices could have an effect on the quantity of fertilizer than could be utilized to crops, with hostile implications for yields.

Low home costs might lead to a small cutback in wheat plantings in Russia, the world’s largest exporter, whereas extreme war-induced impacts in Ukraine are estimated to cut back winter wheat space plantings by 40 per cent.

Report planting is forecast for India, spurred by excessive market and help costs, and comparatively excessive planting is projected in Pakistan as standing water from the 2022 floods is inflicting much less hindrance than initially anticipated.

Within the southern hemisphere international locations, many of the 2023 coarse grain crops have been sown. Brazil could put up document maize plantings, whereas these in Argentina might lower attributable to low soil moisture ranges and climate circumstances augur nicely for maize yield prospects in South Africa, the report said.