Meat costs upward thrust; dairy declines
3 Might 2024
2 minute learn
The United International locations meals company’s global value index rose for a 2d consecutive month in April as upper meat costs and small will increase in vegetable oils and cereals outweighed declines in sugar and dairy merchandise.
The Meals and Agriculture Group’s (FAO) value index, which tracks essentially the most globally traded meals commodities, averaged 119.1 issues in April, up from a revised 118.8 issues for March, the company mentioned on Friday.
The FAO’s April studying used to be nevertheless 7.4% beneath the extent a 12 months previous.
The indicator hit a three-year low in February as meals costs endured to transport again from a report height in March 2022 in the beginning of Russia’s full-scale invasion of fellow crop exporter Ukraine.
In April, meat confirmed the most powerful achieve in costs, emerging 1.6% from the prior month. Upper costs for poultry, pork and sheep meat offset a small fall for red meat, which used to be suffering from gradual call for in Western Europe and from main importers, particularly China, the FAO mentioned.
The FAO’s cereal index inched as much as finish a three-month decline, supported by way of more potent export costs for maize (corn). Vegetable oil costs additionally ticked upper, extending earlier positive aspects to succeed in a 13-month top because of power in sunflower and rapeseed oil.
The sugar index dropped sharply, losing 4.4% from March to face 14.7% beneath its year-earlier stage amid bettering world provide possibilities.
Dairy costs edged down, finishing a run of six consecutive per month positive aspects.
In separate cereal provide and insist knowledge, the FAO nudged up its estimate of worldwide cereal manufacturing in 2023/24 to two.846 billion metric heaps from 2.841 billion projected closing month, up 1.2% from the former 12 months, particularly because of up to date figures for Myanmar and Pakistan.
For upcoming plants, the company reduced its forecast for 2024 world wheat output to 791 million heaps from 796 million closing month, reflecting a bigger drop in wheat planting within the Ecu Union than up to now anticipated.
The revised 2024 wheat output outlook used to be nevertheless about 0.5% above the former 12 months’s stage.