From the Food and Agriculture Organization:
» The FAO Food Price Index* (FFPI) averaged
162.5 points in May 2020, down 3.1 points (1.9 percent) from April and
reaching the lowest monthly average since December 2018. With the
continued negative economic effects of COVID-19, the FFPI has been on a
downward trend for four consecutive months. The latest drop in May
reflects falling values of all the sub-indices with the exception of
sugar, which rose for the first time in three months.
» The FAO Cereal Price Index
averaged 162.2 points in May, down 1.6 points (1.0 percent) from April
and very close to its level in the corresponding month last year. Among
major cereals, only rice prices rose in May. International rice prices
edged up 1 percent, mainly on rising Japonica and Basmati quotations,
although currency movements and demand from Malaysia and the Philippines
also kept Indica quotations firm. In wheat markets, after a rise in
April, export prices fell under downward pressure, shedding almost 2
percent, as expectations point to ample global supplies also in the new
season while trade activities have slowed down with the harvesting
seasons underway, or approaching, in the northern hemisphere. In coarse
grain markets, the US maize prices, continuing the downward trend of the
last four months, fell further in May, to almost 16 percent below the
corresponding period last year. Weak demand from feed and biofuel
sectors, amidst abundant export supplies, continued to pressure
international maize prices.
» The FAO Vegetable Oil Price Index
averaged 128.1 points in May, shedding another 3.7 points (or 2.8
percent) and marking a 10-month low. The continued decline of the index
primarily reflects lower palm oil prices, whereas quotations of rapeseed
and sunflower oils increased. International palm oil values registered
the fourth consecutive monthly drop in May, mainly reflecting
protracted, subdued global import demand (tied to the coronavirus
pandemic and depressed mineral oil prices) and higher than expected
production and inventory levels in major exporting countries. By
contrast, international prices of rapeseed and sunflower oils
strengthened owing to, respectively, prospects of continued supply
tightness in the EU and shrinking exportable surpluses in the Black Sea
region.
» The FAO Dairy Price Index averaged 181.8 points
in May, down 14.4 points (7.3 percent) from April, registering the third
consecutive month of decline and setting the index value 44.3 points
(19.6 percent) below its level one year ago. Quotations for all dairy
products represented in the index fell in May, with the steepest drops
registered for butter and cheese. Quotations for butter fell due to
large seasonal supplies, especially in Europe, while those of cheese
dropped, pressured by lower import demand amid high late season export
supplies from Oceania. Despite continued high export availabilities and
inventories, quotations for whole milk powder (WMP) and skim milk powder
(SMP) declined only moderately, as low prices and renewed economic
activities in China fuelled strong buying interests.
» The FAO Meat Price Index*
averaged 168.0 points in May, down 1.3 points (0.8 percent) from April,
registering the fifth consecutive monthly decline. At this level, the
index is 6.3 points (3.6 percent) below its value in the corresponding
month last year and 44 points (20.8 percent) below the peak it reached
in August 2014. In May, international quotations for poultry and pig
meats continued to fall, reflecting high export availabilities in major
producing countries, despite an increase in import demand in East Asia
following the relaxation of COVID-19 social distancing measures. Ovine
meat prices fell slightly due to diminished import demand from the
Middle East, caused by economic hardships and logistical difficulties.
By contrast, bovine meat quotations increased on strong import demand
amid reduced supplies from Brazil and Oceania, reflecting the start of
herd rebuilding phases....
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