[ 2021-03-06 ]

FAO Food Price Index rises for ninth consecutive month in February
Global food commodity prices rose for the ninth
consecutive month in February, with quotations for
sugar and vegetable oils increasing the most, the
Food and Agriculture Organization of the United
Nations (FAO), has reported.

The report tracks monthly changes in the
international prices of commonly-traded food
commodities, which averaged 116.0 points in
February, 2.4 per cent higher than the previous
month and up 26.5 per cent from a year ago.

The FAO Sugar Price Index rose by 6.4 per cent
from January, as production declines in key
producing countries together with strong import
demand from Asia prompted ongoing concerns over
tighter global supplies.

The report indicated that expectations of a
production recovery in Thailand and a bumper crop
in India dampened the increase.

The FAO Vegetable Oil Price Index gained 6.2 per
cent, reaching its highest level since April 2012.
Prices for palm, soy, rape, and sunflower seed
oils, all rose.

The FAO Dairy Price Index rose by 1.7 percent, led
by international export quotations for butter,
where firm imports by China met limited supplies
from Western Europe.

It said cheese prices declined, partly due to high
inventories in the United States.

The FAO Cereal Price Index averaged 1.2 percent
higher than in January, it said, adding that
sorghum prices rose 17.4 per cent in the month,
driven by ongoing strong demand from China.

The report noted that international prices of
maize, wheat, and rice were either stable or edged
up slightly.

The FAO Meat Price Index increased 0.6 per cent,
pushed higher by tight supplies of bovine and
ovine meats in key producing regions.

It said, by contrast, pig meat price quotations
fell, underpinned by reduced purchases by China
amidst heavy oversupplies and a rise in unsold
pigs in Germany due to the continued ban on
exports to Asian markets.

The FAO also released the Cereals Supply and
Demand Brief, including updated assessments of
global production, consumption, trade, and
inventories.

The report said global wheat production in 2021
was likely to increase and hit a new record of 780
million tonnes, according to FAO's preliminary
forecast, with expectations of a rebound in
production in the European Union more than offset
weather-impacted production prospects for output
in the Russian Federation.

It said maize production in South Africa was
expected to reach near-record levels in 2021,
while outputs in South America are forecast at
well-above-average levels.

The report said the crop was yet to be planted in
countries north of the equator.

It noted that highlights include a new and higher
estimate for world cereal production in 2020, now
seen at 2,761 million tonnes, a 1.9 per cent
increase from the previous year, lifted by
higher-than-expected outturns reported for maize
in West Africa, for rice in India, and wheat
harvests in the European Union, Kazakhstan and the
Russian Federation.

The FAO's new projections for 2020/21 include a
2.0 per cent annual increase in global cereal
utilization to 2,766 million tonnes and a 5.5 per
cent growth in world trade in cereals to 464
million tonnes.

It said global cereal stocks were now forecast to
end 2021 at 811 million tonnes, 0.9 per cent below
their opening levels, pushing down the
stock-to-use ratio to 28.6 percent.

The report said world rice and wheat stocks were
expected to increase, while those of coarse grains
declined.

Source - GNA

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