06 Jan 2022 — The Meals and Agriculture Group (FAO) of the United Nations, which tracks month-to-month modifications in worldwide costs of generally traded meals commodities, experiences a dip in meals costs in December as vegetable oils and sugar take a pounding.
“Whereas usually excessive costs are anticipated to offer strategy to elevated manufacturing, the excessive price of inputs, the continuing world pandemic and ever extra unsure weather conditions go away little room for optimism a few return to extra steady market circumstances even in 2022, ” says FAO senior economist Abdolreza Abbassian.
The dairy sub-index alone posted a month-to-month rise within the final month. The FAO Meals Worth Index averaged 133.7 factors in December, a 0.9% decline from November, nonetheless up 23.1% from December 2020.
For 2021 as an entire the index averaged 125.7 factors, about 28.1% above the earlier yr.
Cereal and oil indexes carry out effectively general
The FAO Cereal Worth Index decreased 0.6% from November, as falling wheat exports offset firmer maize costs following good harvests within the southern hemisphere. These costs are underpinned by sturdy demand and issues over persistent dryness in Brazil.
Numerous and well-connected agri-food techniques are higher geared up to soak up sudden shocks like COVID-19 and secure food supply, the FAO not too long ago urged. falling wheat exports offset firmer maize costs
The Cereal Worth Index did, nonetheless, attain its highest annual stage since 2012 and averaged 27.2% greater than in 2020.
Maize is up 44.1%, wheat is up 31.3% and rice down dipped by 4%. The barometer of food commodity prices in worldwide markets rose for the fourth consecutive month in November, led by sturdy demand for wheat and dairy merchandise.
The FAO Vegetable Oil Worth Index declined 3.3% in December, with weaker quotations for palm oil and sunflower oil. The costs replicate the subdued world import demand which have linked to issues over the influence of rising COVID-19 circumstances.
For 2021 as an entire, the FAO Vegetable Oil Worth Index reached an all-time excessive, rising 65.8% from 2020.
Sugar, meat and dairy indexes peak
The FAO Sugar Worth Index reached a low for the fifth consecutive month with a 3.1% lower. Issues over the doable influence of the Omicron COVID-19 variant, a weaker Brazilian Actual and decrease ethanol costs on world demand have been cited as doable causes, the FAO experiences.
For 2021 as an entire, the FAO Sugar Worth Index rose 29.8% from the earlier yr to its highest stage since 2016.
The FAO Meat Worth Index was steady in December. For 2021 as an entire, this index was 12.7% greater than in 2020. International meals commerce accelerated and was poised to hit a record in volume and worth phrases in November.
The FAO Dairy Worth Index was the one sub-index to extend in December, rising 1.8% from the earlier month. Worldwide quotations for butter and milk powders elevated amid decrease milk manufacturing in Western Europe and Oceania, accounting for the sub-index improve. This index averaged 16.9% greater than in 2020.
Cheese costs declined marginally, reflecting a choice for Western Europe dairy producers.
In July of 2021, world meals commodity costs fell for the second consecutive month. The July drop mirrored a decline within the quotations for many cereals and vegetable oils in addition to dairy merchandise.
Edited by Inga de Jong
To contact our editorial crew please e-mail us at
editorial@cnsmedia.com
When you discovered this text worthwhile, you might want to obtain our newsletters.
Subscribe now to obtain the most recent information straight into your inbox.