Login ID:
Partner Login
Contact Us : 7066511911

Global Food Prices Rise for Third Consecutive Month

8 Jun 2024 1:09 pm
 Comments 0 Comments  |  Comments Post Comment  |  Font Size A A A 

MUMBAI, 9 Jun (Commoditiescontrol): The Food and Agriculture Organization of the United Nations (FAO) reported on Friday that global food commodity prices rose for the third consecutive month in May. This uptick was primarily driven by higher prices for dairy products and cereals, which offset reductions in sugar and vegetable oil prices.

The FAO Food Price Index, which tracks monthly changes in international food commodity prices, averaged 120.4 points in May, reflecting a 0.9% increase from the revised April figure. Despite this rise, the index was still 3.4% lower than the same month last year and 24.9% below the peak recorded in March 2022.

Cereal Prices Surge

The FAO Cereal Price Index saw a significant 6.3% increase from April, spurred by rising wheat export prices. Concerns over unfavorable crop conditions in major producing regions, including Northern America, Europe, and the Black Sea area, have led to fears of reduced yields for the 2024 harvest. Additionally, challenging weather conditions in Brazil and the impact of Spiroplasma disease (corn stunt disease) in Argentina, along with low selling activity in Ukraine and ripple effects from the wheat markets, contributed to the rise in maize export prices. The FAO Rice Price Index also edged up by 1.3% in May.

Dairy Prices Climb

In anticipation of the summer holiday season, there was increased demand in the retail and food services sectors, which, coupled with expectations of reduced milk production in Western Europe, led to a 1.8% rise in the FAO Dairy Price Index from April. Renewed demand for spot supplies from North Africa and the Near East further pushed up dairy prices.

Sugar Prices Decline

Conversely, the FAO Sugar Price Index fell by 7.5% in May, influenced by the promising start of Brazil's new harvest season. Reduced global crude oil prices and decreased sugar demand exerted additional downward pressure on sugar prices.

Vegetable Oil Prices Fall

The FAO Vegetable Oil Price Index decreased by 2.4% in May. This decline was driven by seasonal production increases and sustained low global demand for palm oil, which offset rising soy oil prices due to growing biofuel industry demand and increased prices for rapeseed and sunflower oils resulting from diminished export opportunities in the Black Sea region.

Overall, the FAO's report underscores the dynamic nature of global food commodity prices, with significant variations across different sectors. As global markets respond to a range of factors, from weather conditions to geopolitical tensions, these fluctuations are likely to continue impacting food prices worldwide.

(By Commoditiescontrol Bureau; +91 98201 3018)

  Rate this story 1 out of 52 out of 53 out of 54 out of 55 out of 5 Rated

   Post comment
Comment :

Note : This forum is moderated. We reserve the right to not publish and/or edit the comment on the site, if the comment is offensive, contains inappropriate data or violates our editorial policy.
Name :  
Email :  

Post Comment  

Latest Market Commentary
Gujarat Summer Sowing Down 0.03% - 15 Apr 2024
Gujarat Summer 2024 Crops Sowing Down 1.08% - 01 Apr 20...
Gujarat Summer 2024 Crops Sowing Down 3.54% - 26 Mar 20...
Gujarat Summer 2024 Crops Sowing Down 4.95% - 18 Mar 20...
Gujarat Summer Sowing Shows 21% Decline Compared to Pre...
Top 5 News
Market Wise Chana Arrivals: Supply Up By 3.56% Against...
Market Wise Tur Arrivals: Supply Up By 8.39% Against P...
Market Wise Matar Arrivals: Supply Down By -41.56% Aga...
Market Wise Masur Arrivals: Supply Down By -3.16% Agai...
Market Wise Moong Arrivals: Supply Up By 5.62% Against...
Top 5 Special Reports
Argentina's Currency Market Intervention: Will It Reviv...
Weekly: Sugar Prices Decline Amid Strong Brazilian Outp...
Weekly: Cotton Extend Loss For 7th Week; Bears Tighten ...
USDA lowers 2024-25 global soybean production estimates...
USDA revises 2024-25 global cotton ending stocks estima...
Copyright © CC Commodity Info Services LLP. All rights reserved.