From the U.N.'s Food and Agricultural Organization, June 7:
» The
FAO Food Price Index* (FFPI)
averaged 176.2 points in May 2018, up 2.2 points (1.2 percent) from
April level and hitting its highest level since October 2017. The
increase in May reflected a continued steep rise in dairy price
quotations, while those of cereals also rose, albeit at a slower pace.
By contrast, vegetable oil and sugar markets remained under downward
pressure whereas meat values changed little.
» The FAO Cereal Price Index
averaged 172.9 points in May, 4.1 points (2.4 percent) above its April
level. The index continued on an upward path since the start of this
year, standing in May at almost 17 percent above its corresponding value
a year ago and reaching the highest level since January 2015.
International prices of all major cereals have strengthened considerably
in recent months, and in May wheat values gained largely on concerns
over production prospects in a number of major exporting countries.
International prices of leading coarse grains also rose, mostly due to
deteriorating production prospects in Argentina and Brazil. Sizable
purchases by Southeast Asian buyers kept international rice prices firm
in May, notwithstanding weaker currencies of some top exporting
countries and soft demand for aromatic and parboiled rice.
» The FAO Vegetable Oil Price Index
averaged 150.6 points in May, down by 4 points (2.6 percent)
month-on-month, marking a fourth consecutive decline and a 27-month low.
The slide mainly reflects weakening values of palm, soy and sunflower
oils, whereas rapeseed oil prices rebounded from their April’s
multi-month low. As for palm oil, despite prospective production
slowdowns in Southeast Asia, international prices fell due to sluggish
global import demand and large inventories compared to last year. In the
case of soy oil, ample supplies and stocks resulting from meal-driven
crushing continued to weigh on world prices. The rise in rapeseed oil
prices mainly reflected concerns about unfavourable weather conditions
affecting the 2018/19 crop in parts of Europe.
» The FAO Dairy Price Index
averaged 215.2 points in May, up 11 points (5.5 percent) from April and
marks the fourth month in a row for the index to rise. The index value
stood at 11.5 percent higher than in May 2017, yet still 22 percent
below the peak reached in February 2014. The rise in May was mainly
driven by sizeable increases in the price quotations of cheese, Skim
Milk Powder (SMP) and butter, as those of Whole Milk Powder (WMP) were
virtually unchanged. Tight supplies in New Zealand, the leading exporter
of dairy products, are much behind the market firmness witnessed in
recent months....MUCH MORE
