World Food Price Index Up 0.6% from Previous Month... Reverses to Increase After One Year

FAO, April Global Food Price Index
Sugar up 17.6%... Highest since October 2011
Cereal Price Index down 1.7%

Last month, global food prices turned upward for the first time in a year due to rising sugar and meat prices.

According to the United Nations Food and Agriculture Organization (FAO) on the 6th, the global food price index for April recorded 127.2 points, up 0.6% from the previous month (126.5 points).

By commodity group, prices for cereals, oils, and dairy products fell compared to the previous month, while meat and sugar prices rose. In particular, the rise in sugar prices drove the overall increase in food prices.

The cereal price index for April recorded 136.1 points, down 1.7% from March (138.6 points). International wheat prices fell due to expanded export availability from Russia and Australia.

An official from the Ministry of Agriculture, Food and Rural Affairs explained, "European countries that had banned the export of Ukrainian grain via their own territory agreed at the end of April to allow it again, and the favorable wheat crop conditions in Europe also contributed to the decline in wheat prices. Corn prices fell as the harvest season approached in South America and Brazil's production was expected to increase, while international rice prices rose."

Photo by Asia Economy DB

Sugar Prices Rise Amid International Supply Shortage Concerns

Sugar recorded 149.4 points, up 17.6% from the previous month (127.0 points), reaching the highest level since October 2011. The biggest cause was concerns over international supply shortages as production forecasts continued to decline in India and China, and production in Thailand and the EU was also expected to fall short. Although Brazil's sugarcane production is expected to be favorable, increased rainfall delayed harvesting, and rising international crude oil prices along with the strengthening of the Brazilian real against the US dollar also influenced the rise in sugar prices.

Prices for oils recorded 130.0 points, down 1.3% from the previous month (131.8 points). Palm oil prices remained largely unchanged due to weak supply from major producing countries and weak demand from major importing countries. Soybean oil prices fell despite low production forecasts in Argentina, as a large soybean harvest was expected in Brazil. Canola oil and sunflower oil prices also declined due to sufficient global supply.

Meat prices rose 1.3% from the previous month (113.0 points) to 114.5 points. Beef prices increased as slaughter volumes decreased in the United States. Pork prices rose amid increased imports by Asian countries and continued supply shortages in major exporting countries due to high production costs. Poultry prices increased due to supply shortages caused by outbreaks of avian influenza in several countries and rising demand in the Asian region.

Dairy prices fell 1.7% from the previous month (126.8 points) to 124.6 points. Powdered milk prices declined due to persistent weak international import demand. Whole milk powder prices saw limited declines due to increased imports by China and temporary supply reductions in New Zealand, while skimmed milk powder prices fell further as supply increased in Western Europe. Cheese prices dropped as temporary increases in milk supply in Western Europe boosted cheese production and expanded export availability. However, butter prices remained largely unchanged due to balanced increases in supply and demand.

Global Cereal Production Down 28.3 Million Tons, Consumption Down 20.6 Million Tons

FAO forecasts that global cereal production for 2022-23 will be 2.7846 billion tons, a 1.0% (28.3 million tons) decrease compared to 2021-22. Global cereal consumption for 2022-23 is expected to be 2.7801 billion tons, down 0.7% (20.6 million tons) from 2021-22. Global cereal ending stocks are projected at 855 million tons, a 0.2% (1.4 million tons) decrease compared to 2021-22.

(Photo) [Image source=Yonhap News]

A government official stated, "Regarding the rise in international sugar prices, with Brazil's favorable crop outlook, it is expected that there will be no major supply and demand problems worldwide. We plan to establish a close cooperative system with the industry to closely monitor market conditions and consider necessary measures for price stabilization if needed."

This content was produced with the assistance of AI translation services.