Virtual stability in global food prices – CommodAfrica

Virtual stability in global food prices – CommodAfrica
Virtual stability in global food prices – CommodAfrica

The rebound in March (+1.1%) after seven months of decline in global food prices was short-lived. The FAO food price index is almost stable (+0.3%) in April compared to March. The index is down 7.4% from its value in April 2023.

L’FAO food price index cereals increased 0.3% in April compared to March, but showed a drop of 18.3% compared to April 2023. After three consecutive months of decline, average world prices of wheat exports stabilized in April. Upward pressure on prices, due to concerns about the impact of unfavorable growing conditions on 2024 harvests in parts of the European Union, the Russian Federation and the United States of America, has been offset by the tough competition that persists between the main exporting countries. On the other hand, the prices of but exports increased in April, mainly driven by strong import demand, in a context of growing logistical difficulties due to damage to infrastructure in Ukraine, and darkening production prospects in Brazil before the start of the main harvest. As for other coarse grains, in April world prices of barley also increased, while those of sorghum have weakened. The FAO price index of all types of rice lost 1.8%.

The FAO food price index vegetal oils is almost unchanged (+0.3%) but reached its highest level in 13 months. This modest increase reflects the net effect of the appreciation in the prices of sunflower oil and rapeseed oil, which more than offset the slight decrease in the prices of palm oil and rapeseed oil. soy. The decline in international palm oil prices in April was largely due to seasonal increases in production in major producing countries and continued weak global import demand. Global soybean oil prices declined after a short rebound as ample supplies are expected in South America, where the outlook for soybean production is positive. In contrast, international prices for sunflower oil and rapeseed oil continued to rise, driven respectively by continued strength in global import purchases and concerns over weather conditions. unfavorable weather conditions for winter rapeseed in parts of Europe.

The FAO food price index dairy products is almost stable (-0.3%), after six consecutive months of increase. International prices of skimmed milk powder showed the sharpest decline, mainly due to sluggish import demand on the spot market in a context of abundant exportable supplies, particularly in Western Europe.

The FAO Food Price Index meat grew by 1.6%. International poultry meat prices increased, driven by stable import purchases in Middle Eastern countries amid persistent production problems due to avian flu outbreaks. Beef prices also increased as demand remained high among major importers, despite increased supplies from domestic sources in major importing countries. Sheep meat prices have started to rise slightly again, with market participants expecting a seasonal tightening of supply in Oceania. On the other hand, pork meat prices fell moderately, due to sluggish internal demand in Western Europe and demand that remained sluggish in the main importing countries, particularly in China.

The FAO food price index sugar fell by 4.4% with the improvement in the outlook for global supply due mainly to more abundant production than expected in India and Thailand. In addition, improved rainfall in Brazil in late March and early April, after a long period of dry weather, eased concerns about prospects for the just-started harvest.


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