Monday, 10 June 2024 10:53

FAO Food Price Index inches up

Written by  Staff Reporters
Maize export prices increased in May. Maize export prices increased in May.

The benchmark for world food commodity prices increased for the third consecutive month in May, as higher prices of cereals and dairy products outweighed decreases in quotations for sugar and vegetable oils, the Food and Agriculture Organization of the United Nations (FAO) reports.

The FAO Food Price Index, which tracks monthly changes in the international prices of a set of globally-traded food commodities, averaged 120.4 points in May, up 0.9% from its revised April level, while it remained 3.4% down from its level a year ago and 24.9% below its March 2022 peak.

The FAO Cereal Price Index rose by 6.3% from April, powered higher by rising global wheat export prices, reflecting growing concerns about unfavourable crop conditions curbing yields for the 2024 harvests in major producing areas including parts of Northern America, Europe and the Black Sea region.

Maize export prices also increased in May, pushed up by production concerns in both Argentina, due to Spiroplasma disease, and Brazil, due to unfavourable weather conditions, as well as spillover effects from the wheat markets and limited selling activities in Ukraine.

The FAO Dairy Price Index increased by 1.8% from April, underpinned by increased demand from the retail and food services sectors ahead of the summer holidays as well as market expectations that milk production in Western Europe may fall below historical levels. Renewed import demand for spot supplies from some countries in the Near East and North Africa also lifted dairy prices.

The FAO Sugar Price Index, meanwhile, decreased by 7.5% from April, mainly driven by pressure from the good start of the new harvest season in Brazil. Lower international crude oil prices also exerted downward pressure on sugar prices, by lowering demand.

The FAO Vegetable Oil Price Index declined by 2.4% from April. Lower palm oil quotations due to seasonal output increases and ongoing weak global demand more than offset higher prices of soy oil, due to increasing demand from the biofuel sector, and firmer prices of rapeseed and sunflower oils due mainly to diminishing export availabilities in the Black Sea region.

The FAO Meat Price Index decreased marginally, by 0.2%, as international prices of poultry and bovine meats fell while those of pig and ovine meats increased.

More like this

Let's take our hats off to dairy farmers!

It’s World Milk Day today (June 1), a time to celebrate the vital role that milk, and dairy products play in our lives and acknowledge the tremendous contributions of the New Zealand dairy sector.

Featured

Will Trump get involved in NZ's dairy dispute?

Canada's blatant manipulation of international trade rules around the export of subsidised dairy products is likely to escalate further with the new Trump administration now in the White House.

Sweet or sour deal?

Not all stakeholders involved in the proposed merger of honey industry groups - ApiNZ and Unique Manuka Factor Honey Association (UMFHA) combining to form a larger organisation - think the deal is so sweet.

Rise in fall armyworm numbers

Populations of fall armyworm are two to three weeks more advanced than they have been in previous seasons, bringing calls for maize and sweetcorn growers to scout their crops as often as possible.

Tractor therapy

While many MPs have been busy taking holidays in maybe exotic places, for Andrew Hoggard it's back to his old job as a dairy farmer during the so-called 'summer break'.

A steep learning curve

A steep learning curve, a very busy year and thank heavens for tractor therapy. That's how Associate Agriculture Minister Andrew Hoggard described his first year in Parliament to reporter Peter Burke at his dairy farm in the Manawatu during the holiday break.

Hort exporters eye Indian market

Exporters need to understand that India should not be seen as just one country to export to, rather a country of many unique states and regions.

National

New insights into rural fire risk

New student research from the University of Canterbury in partnership with Fire and Emergency New Zealand (FENZ) could improve knowledge…

Embrace mechanical weeding now

Mechanical weeding is exploding in Europe because increasing resistance means they have "run out of herbicide", says Canterbury agronomist Charles…

China still a good option

The ongoing rise of the Chinese middle class will drag up demand for New Zealand products there in the future.

UAE FTA signed

New Zealand’s free trade deal with the United Arab Emirates (UAE) has now been signed.

Machinery & Products

Batten Buddy - cleverly simple

Stopping livestock from escaping their environment is a “must do” for any farmers or landowners and at times can seem…

U10 Pro Highland a step up

A few weeks after driving the CF MOTO U10 Pro ‘entry level’ model, we’ve had a chance to test the…

» Latest Print Issues Online

The Hound

Hallelujah moment

OPINION: The new Public Service Commissioner Sir Brian Roche has just had the hallelujah moment of the 21st century in…

Waste-watch

OPINION: Media luvvies have pigeon-holed the Taxpayers Union (TPU) as some right-wing lobby, but as far as this old mutt…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter