Export prices for corn fell amid expectations of a bumper harvest in South America and affordable prices offered by Ukraine. Food prices fall for seventh month in a row Economic development
Core global food prices fell again in February for the seventh month in a row. Lower international prices for major grains largely offset higher prices for sugar and meat, the Food and Agriculture Organization of the United Nations (FAO) said on Friday.
The FAO index, which tracks monthly changes in international prices of major food commodities, stood at 117.3 in February, down 0.7 percent from January and 10.5 percent below the same month a year earlier.
Cereals
World grain trade is projected to increase 1.3 percent from the previous year, supported by an improved outlook for Ukraine’s corn exports and increased demand from China.
Favourable weather conditions will boost wheat production in the Russian Federation, which is one of the world’s largest exporters, as well as good harvests in China, India and Pakistan.
Export prices for corn fell amid expectations of a bumper harvest in South America and affordable prices offered by Ukraine. International rice prices also fell 1.6 percent in February.
Vegetable oils
Vegetable oil price index decreased by 1.3 percent compared to January and was 11 percent below its value for February 2023. World soybean oil prices fell markedly, helped by prospects for a bumper soybean harvest in South America. World prices for palm oil increased slightly in February due to a seasonal decline in production.
Dairy products
Price index for dairy products increased by 1.1 percent, driven by increased demand for butter from Asian buyers. Prices for milk powder and cheese also increased slightly.
Meat
The meat price index increased by 1.8 percent compared to January, with quotes for poultry and beef rising the most, helped by heavy rains that disrupted livestock transportation in Australia. Pork prices also rose slightly due to increased demand from China and tight supply conditions in Western Europe.
Sugar
The sugar price index increased by 3.2 percent in February. The trend reflected continued concerns about production in Brazil following a prolonged period of below-average rainfall, as well as projected declines in production in Thailand and India.