Dubai: The United Nations meals company’s world worth index fell in Could to its lowest in two years, as a droop in costs of vegetable oils, cereals and dairy outweighed will increase for sugar and meat.
The Meals and Agriculture Group’s (FAO) worth index, which tracks probably the most globally-traded meals commodities, averaged 124.3 factors in Could in opposition to a revised 127.7 for the earlier month, the company mentioned on Friday. The April studying was initially given as 127.2.
The Could rating marked the bottom since April 2021 and meant the index was now 22 per cent beneath an all-time peak reached in March 2022 following the beginning of Russia’s assault on Ukraine.
FAO’s cereal worth index dropped by almost 5 per cent in Could from the prior month, pressured by ample provide prospects and the extension of the Black Sea Grain Initiative permitting shipments from Ukraine.
However worldwide rice costs continued to extend in Could, partly on account of tighter provides in some exporting international locations, mentioned FAO. The company final month expressed concern over rising costs of the staple.
FAO’s vegetable oil worth index slid nearly 9 per cent month on month, reflecting massive oilseed provides and weak demand for palm oil, whereas international dairy costs eased over 3 per cent amid a seasonal upturn in northern hemisphere milk output, the company mentioned.
Sugar costs, in distinction, confirmed a 5.5 per cent enhance from April in a fourth straight month-to-month acquire, as considerations over the El Nino climate sample added to international provide dangers, FAO mentioned.
Nevertheless, enhancing climate circumstances in Brazil and decrease crude oil costs have curbed sugar markets, it added. Sugar futures ended Could decrease after a 12-year excessive in late April.
In a separate report on cereals provide and demand, FAO forecast world cereal manufacturing this 12 months at 2.813 billion tonnes, a 1 per cent enhance from 2022 that primarily mirrored an anticipated rise in maize output.
International cereal shares within the 2023/24 season had been projected to rise 1.7 per cent 12 months on 12 months to a document 873 million tonnes, reflecting bigger anticipated shares of maize, rice and barley.
Wheat shares had been forecast to fall, nonetheless, as manufacturing was seen declining whereas demand was anticipated to be secure.