The food price index of the FAO (Food and Agriculture Organization) was in April at 36.4 points (29.8%) above the value registered in the same month last year, however, “in relation to Last March there was a slight decrease of 0.8% (1.2 points)”, according to the agricultural expert, Manuel González Tejera (Manegonte).
The price index “in April 2022 stood at an average of 158.5 points, which represents a decrease of 1.2 points (0.8%) compared to the historical record reached in March,” indicates the expert regarding the FAO report.
It indicates that the decline in the index in April was led by a significant decline in the vegetable oil price sub-index, along with a slight decline in the cereal price sub-index. In parallel, the price sub-indices for sugar, meat and dairy products registered a moderate increase.
The report indicates that the FAO Cereal Price Index registered an average of 169.5 points in April, that is, 0.7 points (0.4%) below the record reached in March (since 1990).
Cereals
After soaring to a record high in March, international coarse grain prices fell 1.8% in April, reflecting a 3.0% decline in maize prices as seasonal supplies from the ongoing harvests in Argentina and Brazil helped relieve pressure on markets.
World sorghum prices also fell 0.4% in April, while tight supplies pushed barley prices up 2.5%. International wheat prices rose in April, although with a minimal difference, increasing by 0.2%.
“While the ongoing port blockade in Ukraine and concerns about the 2022 crop situation in the United States of America kept prices high, the rise was tempered by rising prices. shipments from India, higher-than-expected exports from the Russian Federation and a slight decline in world demand as a result of high prices. In April, international rice prices rose 2.3% from March levels, sustained by a combination of strong local demand in several of the Asian exporting countries, purchases by buyers from the Middle East and China, and weather headwinds in the Americas. ”, explains Manegonte.
oils
The FAO Vegetable Oil Price Index averaged 237.5 points in April, down 14.3 points (5.7%) from the record high in March, although it remained markedly above the level of a year ago. one year. The decline was due to lower world prices for palm, sunflower and soybean oils, which more than offset higher rapeseed oil quotations.
International palm oil prices fell moderately in April, depressed mainly by sluggish global imports due to high costs, as well as weakening demand prospects in China.
However, uncertainty about export availability from Indonesia, the world’s leading palm oil exporter, held back a further decline in international prices. Meanwhile, world prices for sunflower and soybean oils also fell from the previous month, which was largely linked to demand rationing following recent record prices. By contrast, rapeseed oil prices remained firm in April, reflecting persistent global supply tightness.
The FAO Dairy Price Index averaged 147.1 points in April, up 1.3 points (0.9%) from March. which represents the eighth consecutive month of increase and pushes the index 28.0 points (23.5%) above its value a year ago. The upward trend in dairy prices continued in April, driven by persistent global supply tightness, as milk production in Western Europe and Oceania remained below seasonal levels.
International butter quotations rose the most, reflecting tight supply, in particular low stock levels, especially in Western Europe, in the face of sudden surges in demand for short-term deliveries, due to part of the current shortage of sunflower oil and margarine. Despite the decline in overseas purchases, steady domestic demand and low stock levels in Europe pushed up world prices for skimmed milk powder and cheese. By contrast, whole milk prices decreased moderately, mainly due to a slowdown in demand in China.
Meat
The FAO Meat Price Index averaged 121.9 points in April, an increase of 2.7 points (2.2%) from March and sets a new record. The continued strength in prices stemmed from rising world prices for poultry, pork and beef.
The increase in poultry meat prices was due to strong demand that occurred in a context of global supply shortages as a result of export disruptions from Ukraine and growing outbreaks of avian flu in the northern hemisphere.
Pigmeat prices continued to rise, albeit less sharply than in March, due to prolonged limited supply of slaughter pigs in Western Europe and high domestic demand in major producing countries. World beef prices increased moderately, due to the high volume of Brazil’s exports, despite the tight supply of slaughter cattle. With this increase, beef prices reached a new record. For sheepmeat, pandemic-related lockdowns and port delays in China led to a decline in meat purchases by the country, pushing prices down slightly.
The FAO Sugar Price Index registered an average of 121.8 points in April, or 3.9 points (3.3%) more than in March, increasing for the second consecutive month and reaching a level that exceeds by more than 20% that registered in the same month last year. Higher ethanol prices in Brazil, coupled with the continued strengthening of the Brazilian real against the US dollar, continued to drive the rise in world sugar prices. Concerns about the slow start of the 2022 harvest in Brazil also favored the rise. However, larger than previously anticipated availabilities in India, a major sugar exporter, bolstered the global supply outlook and prevented more substantial price rises.
The FAO Food Price Index is a measure of the monthly change in international prices for a basket of food products.