From the U.N.'s Food and Agriculture Organization, May 7:
» The FAO Food Price Index* (FFPI)
averaged 165.5 points in April 2020, down 5.7 points (3.4 percent) from
March and the lowest since January 2019. The April decline marked the third consecutive monthly
fall in the value of the Index; largely attributed to several negative
impacts on international food markets arising from the COVID-19
pandemic. Except the cereal sub-index, which declined only slightly, all
the other sub-indices of the overall Index registered significant
month-on-month declines in April, in particular the sugar sub-index.
» The FAO Cereal Price Index
averaged nearly 164.0 points in April, down marginally from March but
still up almost 4.0 points (2.4 percent) from April 2019. Among major
cereals, international prices of wheat and rice rose significantly in
April, but a sharp drop in maize quotations kept the overall value of
the FAO Cereal Price Index close to its level in the previous month.
Wheat prices averaged 2.5 percent higher month-on-month, reflecting
strong international demand amid reports of a quick fulfillment of the
export quota from the Russian Federation, which was implemented in late
March and is not expected to be adjustable until the end of the current
marketing season on 30 June. The imposition of temporary export
restrictions and logistical bottlenecks in some suppliers fueled a 7.2
percent monthly increase in international rice prices, although
increases were capped by the easing and eventual repeal of export
limits, namely in Viet Nam, towards the end of the month. By contrast,
international maize prices registered a third consecutive month of
decline, pushing down the overall value of the coarse grains index by 10
percent from the previous month. Already large export availabilities,
supplemented by newly harvested crops in South America, amid weaker
demand for animal feed and fuel ethanol, continued to put strong
downward pressure on maize prices.
» The FAO Vegetable Oil Price Index averaged 131.8
points in April, shedding 7.2 points (or 5.2 percent) from last month
and hitting its lowest level since August 2019. The third consecutive
monthly decrease in the index mainly reflects falling palm, soy and
rapeseed oil values, whereas sunflower oil prices strengthened. The
continued decline in palm oil prices was driven by the plunge in
international crude oil quotations and sluggish global demand for palm
oil in both the food and energy sectors because of the COVID-19
pandemic. Higher than expected palm oil output in Malaysia added to the
downward pressure on prices. Weakening demand also pushed down soy
and rapeseed oil prices, with soyoil values also affected by higher
than anticipated crushings in the United States. By contrast,
international sunflower oil prices rebounded in April, underpinned by
firm import demand amid concerns over tightening exportable supplies.
» The FAO Dairy Price Index
averaged 196.2 points in April, down 7.3 points (3.6 percent) from
March, registering the second consecutive month of decline and now down
18.8 points (8.8 percent) from its value in the corresponding month last
year. Quotations for butter, skim milk powder (SMP) and whole milk
powder (WMP) fell by over 10 percent in April, reflecting increased
export availabilities and mounting inventories amid weak import demand.
With milk production in the northern hemisphere normally rising at this
time of the year, diminished restaurant sales and reduced demand from
food manufacturers also weighed on prices. By contrast, price quotations
for cheese rebounded moderately on account of limited spot supplies
from Oceania, where production is seasonally declining.
» The FAO Meat Price Index*
averaged 168.8 points in April, down 4.7 points (2.7 percent) from
March, registering the fourth consecutive monthly decline. In April,
international quotations for all meat types represented in the index
fell, as a partial recovery in import demand, mainly in China, was
insufficient to balance a slump in imports from other countries, caused
by continued COVID-19 related economic hardship, logistical bottlenecks
and a steep fall in demand from the food services sector due to
lockdowns. Notwithstanding reduced levels of meat processing as labour
shortages mounted, plummetting restaurant sales led to increased stock
build up and export availabilities, also weighing on meat price
quotations....
....
MUCH MORE
