FAO: World Cereal Production to Reach All-Time High in 2024 FAO Predicts Record Cereal Harvest Economic Development
The average world prices for food products did not change in June: the increase in international quotations for vegetable oils, sugar and dairy products compensated for the decrease in the cost of grains. The Food and Agriculture Organization of the United Nations (FAO) announced this on Friday.
The FAO Food Price Index, which tracks monthly changes in international quotations for a number of food products, amounted to 120.6 points in June, which corresponds to the revised value for May. This is 2.1 percent lower than a year earlier and 24.8 percent below the peak level recorded in March 2022.
Cereals
The grain price index in June fell 3.0 percent from May, driven in part by improved production prospects in major exporting countries.
Vegetable oils
The vegetable oil price index, on the contrary, increased by 3.1 percent compared to May, helped by the recovery in global import demand for palm oil and strong demand for soybean and sunflower oils from the biofuels sector in America.
Sugar
The sugar price index rose 1.9 percent from May after three consecutive monthly declines, largely due to concerns about the potential impact of adverse weather conditions and the monsoon on production in Brazil and India.
Dairy products
The dairy price index rose 1.2 percent, with international butter prices hitting a 24-month high on stronger global demand driven by strong retail sales, seasonally lower milk supplies in Western Europe and low inventories in Oceania.
Meat
The meat price index remained virtually unchanged in June as global prices for lamb, pork and beef almost offset the supply-driven decline in world poultry prices.
Grain harvest forecast
FAO updated its World cereal production forecast for 2024 now stands at 2,854 million tonnes, a new all-time high.
In the cereal supply and demand brief also released by FAO on Friday , the increase in forecasts is explained by positive expectations for the corn harvest in Argentina and Brazil, as well as in Turkey and Ukraine, which compensates for the lower forecast for Indonesia, Pakistan and several countries in South Africa.
The wheat production forecast was also upgraded due to improved prospects in Asia, particularly Pakistan, which should outpace an expected decline in the Russian Federation due to unfavorable weather in key wheat production areas early in the season. Global rice production is forecast to reach a record 535.1 million tons.