Food: Global Prices Up to September 2018

In September, the FAO food price index decreased 7% compared to the same month in 2017, explained by the decline in prices of meat, dairy products, cereals and vegetable oils.

Thursday, October 4, 2018

of the monthly report FAO:

» The FAO Food Price Index* (FFPI) averaged 165.4 points in September 2018, down 2.3 points (1.4 Percent) from August and some 13 points (7.4 percent) below its level in the corresponding period last year. Only the sugar price index firmed in September, whereas the values of the other sub-indices, led by cereals, dropped from the previous month.

» The FAO Cereal Price Index averaged almost 164 points in September, a drop of 4.7 points (2.8 percent) from August, but still 12 points (8 percent) above its September 2017 level. Among the major cereals, the sharpest month-on-month decline concerned maize export quotations, which fell by at least 4 percent from August, mostly on expectations of a very large crop in the United States and ample supply prospects globally. Wheat price quotations, which rose sharply in August, also fell in September, mainly on continued strong sales and shipments from the Russian Federation. International rice prices eased for the third successive month, even though an appreciation of the Thai Baht and expectations of sales to the Philippines limited the September decline to around 1 percent.

» The FAO Vegetable Oil Price Index averaged 134.9 points in September, down 3.2 points (or 2.3 percent) from August. Falling for the eighth month in succession, the Index has reached a three-year low. Prices weakened across the vegetable oil sector, with palm oil registering the most notable decline. Large inventories held in major exporting countries continued to weigh on palm oil values, which recorded a 25 percent drop compared to the corresponding month of last year. International soy and rapeseed oil quotations also fell, underpinned by subdued global import demand, while the arrival of ample new-crop supplies in the Black Sea region exerted downward pressure on sunflower oil prices.

» The FAO Dairy Price Index averaged 191.5 points in September, down 4.7 points (2.4 percent) from the previous month, continuing the downward trend for the fourth consecutive month. In September, international prices of butter, cheese and Whole Milk Powder (WMP) declined while those of Skim Milk Powder (SMP) recovered. The potential for much larger export availabilities weighed on international prices of butter, cheese and WMP. However, SMP prices registered another intermittent recovery in September, resulting in a 16.2 percent gain since the start of the year, largely underpinned by stronger demand for freshly manufactured milk powder.

» The FAO Meat Price Index* averaged 166.2 points in September, down marginally from its revised value for August. International prices of bovine and pig meat remained mostly stable, while those of ovine meat and poultry rose. International prices of ovine meat increased for the fourth consecutive month, reflecting continued supply limitations from Oceania and strong import demand from Asia. Robust demand amid short-term supply constraints, notably in Brazil, also contributed to somewhat firmer poultry prices. However, ample export availabilities in Oceania and the United States kept bovine prices under downward pressure, while new cases of African swine fever and associated import restrictions, weighed on pigmeat values.

» The FAO Sugar Price Index averaged 161.4 points in September, up 4 points (2.6 percent) from August, but still almost 43 percent below its level in the corresponding month last year. The increase in September was largely linked to the ongoing sugar harvesting operations in Brazil, the world’s largest sugar producer and exporter. Drought conditions in Brazil during the critical growing season are seen to have had negative impacts on sugarcane yields, with harvested cane volumes falling below expectations. Furthermore, rising concerns over crop prospects in the South and South-East Asian region, notably in India and Indonesia, due to monsoon rainfalls falling below normal levels, provided additional upward support to International sugar price quotations.



More on this topic

Food: Global Prices up to September 2019

October 2019

In the ninth month of the year, the FAO food price index increased by 3% compared to September 2018, explained by the rise in the prices of sugar, meat, dairy products and vegetable oils.

From FAO's monthly report:

» The FAO Food Price Index* (FFPI) averaged nearly 170 points in September 2019, unchanged from August but 3.3 percent higher than in the corresponding period last year.

Food: Global Prices up to October 2018

November 2018

In September, the FAO food price index decreased 7% compared to the same month in 2017, because of lower prices for meat, dairy products, cereals, vegetable oils and sugar.

From FAO's monthly report:

» The FAO Food Price Index* (FFPI) averaged 163.5 points in October 2018, down 1.4 points (0.9 percent) from September and some 13 points (7.4 percent) below its level in the corresponding period last year.

Food: Global Prices Up 8% in 2017

January 2018

The FAO food price index closed the year with an increase of 8% compared to 2016, the highest annual average since 2014, although it is still 24% below the maximum levels reached in 2011.

From the monthly report on the FAO food price index:

The FAO Food Price Index* (FFPI) averaged 169.8 points in December 2017, down 5.8 points (3.3 percent) from November with the steepest declines registered in the prices of dairy, vegetable oils and sugar while those of cereals and meat also fell but only slightly. For the whole of 2017, the FFPI averaged 174.6 points, up 8.2 percent from 2016 and representing the highest annual average since 2014 although still 24 percent below the 2011 high of almost 230 points. While sugar values plummeted in 2017, dairy and meat prices registered sharp year-on-year increases and those of cereals and oils rose too, albeit more modestly.

Global Food Prices - August 2016

September 2016

Except for cereals, in August prices rose for all commodities covered by the FAO food price index, led by dairy, oils and sugar.

From a statement issued by the Food and Agriculture Organization:

 The FAO Food Price Index* (FFPI) averaged 165.6 points in August 2016, up 3 points (1.9 percent) from July and almost 7 percent above the corresponding period last year.

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