2023-12-08T13:29:41+00:00
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/ The Food and Agriculture Organization of the United Nations (FAO) announced today, Friday, that the global food commodity price index was generally stable during last November, after international prices of grains declined while the prices of vegetable oils recorded an increase.
According to the report of the United Nations, the average of the organization’s index, which tracks monthly changes in international prices for a group of globally traded food commodities, reached 120.4 points in November, that is, close to October levels, which were the lowest since March 2021, and witnessed The November reading decreased by 10.7% compared to November 2022, according to the “Sky News Arabia” website.
The FAO Cereal Price Index fell by 3.0% on a monthly basis last month. In turn, international prices of coarse grains fell by 5.6%, driven by a sharp decline in corn prices, while wheat prices fell by 2.4% last November.
The FAO price index for all types of rice remained stable from month to month, amid contradictory price movements in different countries of origin and market segments.
As for the FAO Vegetable Oil Price Index, it rose by 3.4% from its level recorded in October. International palm oil prices rose by more than 6.0% last month, mainly supported by more active purchases by major importing countries and lower seasonal production in major producing countries.
Global prices of sunflower oil recorded a moderate increase, while prices of soybean and rapeseed oils decreased slightly last November.
The FAO Dairy Price Index rose 2.2% compared to its level in October, driven by higher import demand for butter and skim milk powder from buyers in northeast Asia, as well as higher domestic demand ahead of the start of the winter holidays in Europe. Western.
The FAO Sugar Price Index rose by 1.4% from month to month, with its average in November exceeding its level recorded in the same month last year by 41.1%, as a result of growing concerns about the availability of quantities available for export at the global level amid deteriorating expectations. Production in two major exporting countries, Thailand and India, due to severe drought weather conditions as a result of the El Niño phenomenon.
The FAO Meat Price Index fell by 0.4% compared to October, reflecting a slight decline in global prices for poultry, pork and beef, driven mainly by the availability of large quantities of supplies for export.
The Food and Agriculture Organization raised its forecast for this season’s harvest in a new grain supply and demand brief also released Friday. Global grain production in 2023 reached 2.823 million tons, an increase of 0.9% over the previous year and 10.3 million tons higher than the previous record level recorded in 2021.
Upward revisions were made for wheat production in the Russian Federation and Turkey and corn production in the United States of America, while production forecasts were somewhat lowered in Argentina and Brazil. Meanwhile, corn production forecasts in the European Union and Mexico were lowered. The organization also expects that global rice production in the period 2023-2024 will increase by 0.8% compared to the previous marketing season.
Regarding the upcoming season, planting of the 2024 winter wheat crop is underway in countries of the Northern Hemisphere, and the expansion of the planted area may be limited due to low crop prices. 2024 coarse grain crops are also being planted in countries in the Southern Hemisphere, with plantings slowing in Brazil and recovering in Argentina.
Total global use of cereals in the period 2023-2024 is expected to reach 2,813 million tons, an increase of 1.1% over the period 2022-2023.
Expectations for global grain stocks towards the end of the seasons in 2024 indicate that they will be 2.7% higher than their level at the beginning of the season, and that they will reach a new record high.
Based on the latest forecasts, the global stock-to-use ratio for cereals will reach 30.8% in 2023/24, indicating a generally comfortable level of supplies.
It is expected that there will be a slight contraction in global grain trade in the period 2023-2024, reaching 468.4 million tons, a decrease of 1.8% from its level in the period 2022-2023.