The Value Index averaged 121.4 issues in August
12 September 2023
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The United Countries meals company’s global value index fell in August to a brand new two-year low, reversing a rebound noticed the former month, as a decline in maximum meals commodities offset will increase for rice and sugar, Reuters reported.
The Meals and Agriculture Group’s (FAO) value index, which tracks essentially the most globally traded meals commodities, averaged 121.4 issues in August in opposition to a revised 124.0 for the former month, the company mentioned on Friday.
The July studying used to be to start with given as 123.9 in a rebound from a two-year low in June.
The August determine used to be the bottom since March 2021 and in addition 24% beneath an all-time top reached in March 2022 within the wake of Russia’s invasion of Ukraine.
The drop within the general index mirrored declines for dairy merchandise, vegetable oils, meat and cereals, regardless of a bounce in FAO’s rice benchmark to a 15-year top following Indian export restrictions, the company mentioned.
FAO’s cereal index edged down 0.7% from July as wheat costs fell within the face of northern hemisphere harvests whilst maize (corn) fell for a 7th instantly month to a close to three-year low, confused via a report Brazilian crop and the impending U.S. harvest, it mentioned.
Against this, the company’s rice index surged via virtually 10% month-on-month as India’s determination in July to ban Indica white rice exports disrupted industry at a time of tight availabilities forward of new-crop harvests, FAO mentioned.
FAO’s sugar index rose 1.3% month-on-month in August, striking it 34% above the year-earlier degree, supported via issues about affect of the El Nino climate development on world manufacturing.
Vegetable oil costs had been down 3.1% in August, whilst dairy costs slipped 4%, an 8th instantly per 30 days drop that mirrored abundant provide in Oceania and slower Chinese language imports.
In a separate document on cereal provide and insist, the FAO forecast global cereal manufacturing this yr at 2.815 billion tonnes, down rather from a prior estimate of two.819 billion.
The most recent forecast used to be however up 0.9% on 2022 and coupled report output from 2021, the FAO mentioned.
The downward revision principally mirrored a lower to projected wheat output as dry climate affected Canada and the Ecu Union and heavy rain affected Chinese language vegetation, FAO mentioned.