Meat costs rise; dairy declines
3 Could 2024
2 minute learn
The United Nations meals company’s world value index rose for a second consecutive month in April as increased meat costs and small will increase in vegetable oils and cereals outweighed declines in sugar and dairy merchandise.
The Meals and Agriculture Group’s (FAO) value index, which tracks probably the most globally traded meals commodities, averaged 119.1 factors in April, up from a revised 118.8 factors for March, the company mentioned on Friday.
The FAO’s April studying was nonetheless 7.4% under the extent a 12 months earlier.
The indicator hit a three-year low in February as meals costs continued to maneuver again from a file peak in March 2022 firstly of Russia’s full-scale invasion of fellow crop exporter Ukraine.
In April, meat confirmed the strongest acquire in costs, rising 1.6% from the prior month. Larger costs for poultry, beef and sheep meat offset a small fall for pork, which was affected by sluggish demand in Western Europe and from main importers, particularly China, the FAO mentioned.
The FAO’s cereal index inched as much as finish a three-month decline, supported by stronger export costs for maize (corn). Vegetable oil costs additionally ticked increased, extending earlier features to succeed in a 13-month excessive on account of energy in sunflower and rapeseed oil.
The sugar index dropped sharply, shedding 4.4% from March to face 14.7% under its year-earlier stage amid enhancing world provide prospects.
Dairy costs edged down, ending a run of six consecutive month-to-month features.
In separate cereal provide and demand knowledge, the FAO nudged up its estimate of world cereal manufacturing in 2023/24 to 2.846 billion metric tons from 2.841 billion projected final month, up 1.2% from the earlier 12 months, notably on account of up to date figures for Myanmar and Pakistan.
For upcoming crops, the company lowered its forecast for 2024 world wheat output to 791 million tons from 796 million final month, reflecting a bigger drop in wheat planting within the European Union than beforehand anticipated.
The revised 2024 wheat output outlook was nonetheless about 0.5% above the earlier 12 months’s stage.
