Global Food Prices Decline for Second Month... Sugar Prices Also Decreasing

Global food prices have declined for the second consecutive month. Sugar prices also turned downward last month.

Photo by Asia Economy DB

According to the Ministry of Agriculture, Food and Rural Affairs on the 8th, the Food and Agriculture Organization (FAO) of the United Nations announced that the global food price index for last month was 122.3, down 1.4% from the previous month (124.0).

The global food price index peaked at 159.7 in March last year, dropped to 127.0 in March this year, slightly rebounded in April, but returned to a downward trend from May.

The FAO surveys international price trends for 24 items and publishes monthly food price indices for five commodity groups: cereals, oils, meat, dairy products, and sugar. The index is based on the average prices from 2014 to 2016, set at 100 for comparison.

Last month, prices for all commodity groups except meat fell compared to the previous month.

The sugar price index recorded 152.2, down 3.2% from the previous month (157.2). After rising monthly from 116.8 in January to 157.2 in May, a 34.9% increase over four months, sugar prices turned downward last month. This was due to smooth sugarcane harvesting in Brazil and decreased import demand from China, the world's second-largest sugar importer. However, concerns over El Ni?o effects and the Brazilian real's strength against the US dollar limited the extent of the price decline.

Last month, the cereal price index was 126.6, down 2.1% from the previous month. International wheat prices fell as harvesting began in the Northern Hemisphere. Russia's wheat stock and export tax reductions, along with improved crop conditions in the United States, also contributed to the wheat price decline.

Corn prices temporarily declined as harvesting progressed in Argentina and Brazil.

International rice prices also fell due to decreased demand for Indica (long-grain) rice and Pakistan's expanded rice export policies.

Last month, the oils price index was 115.8, down 2.4%. Despite increases in soybean oil and rapeseed oil prices, declines in palm oil and sunflower oil prices led to an overall decrease in oils prices. The dairy price index last month was 116.8, down 0.8% from the previous month.

Cheese prices fell due to increased export supply, and whole milk powder prices declined as supply increased from New Zealand and other countries, although imports were sluggish in North Asia.

However, butter prices rose due to increased spot market demand in the Middle East and higher household demand in Western Europe.

Skimmed milk powder prices also increased as import demand emerged to secure short-term supplies ahead of production declines in Western Europe.

Last month, the meat price index was 117.9, up 0.1% from the previous month. Poultry prices rose internationally as supply remained low due to the spread of avian influenza (AI) and import demand increased from East Asian countries. Pork prices increased as supply decreased in major production areas such as the European Union (EU). However, beef prices fell due to increased export availability from Australia.

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