Tag: World food prices

Food prices ease slightly in April after record surge, U.N. agency says

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

World food prices eased slightly in April after hitting a record high in March, but global food security remained a concern because of the difficult market conditions, the UN food agency said on Friday.

The Food and Agriculture Organization’s (FAO) food price index, which tracks the most globally traded food commodities, averaged 158.5 points last month versus an upwardly revised 159.7 for March.

The March figure was previously put at 159.3.

“The small decrease in the index is a welcome relief, particularly for low-income food-deficit countries, but still food prices remain close to their recent highs, reflecting persistent market tightness and posing a challenge to global food security for the most vulnerable,” said FAO Chief Economist Maximo Torero Cullen.

Although it declined month-on-month, the April index was 29.8 percent higher than a year earlier, pushed up in part by concerns over the impact of the Russian invasion of Ukraine.

The agency’s cereal price index fell 0.7 percent in April after a 17 percent jump in March. While maize prices dropped 3.0 percent, wheat prices rose 0.2 percent. FAO said wheat was hit by the blockage of ports in Ukraine and worries over crop conditions in the United States, however, these concerns were partially offset by larger shipments from India and higher-than-expected exports from Russia.

FAO’s vegetable oil price index dropped 5.7 percent in April, as demand rationing pushed down prices for palm, sunflower and soy oils.

Sugar prices increased 3.3 percent, the meat price index rose 2.2 percent and the dairy index added 0.9 percent.

In separate cereal supply and demand estimates on Friday, the FAO slightly cut its projection of world wheat production in 2022 to 782 million tonne, from 784 million last month.

The forecast factored in an expected 20 percent reduction in the harvested area in Ukraine and a projected decline in output in Morocco because of a drought in the North African state.

With almost all crops harvested, FAO’s world cereal production forecast for 2021 was unchanged at 2.799 billion tonne, 0.8 percent up on 2020 levels.

The agency slightly increased its projection of global cereals trade in the 2021/22 marketing year to 473 million tonne, up 3.7 million tonne from last month’s forecast but 1.2 percent below the 2020/21 record level.

FAO said the upward revision reflected stronger exports from Russia based on continued shipments in April, mostly to Egypt, Iran and Turkey.

FAO warned in March that food and feed prices could rise by up to 20 percent as a result of the conflict in Ukraine, raising the risk of increased malnutrition.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Russia-Ukraine war: Food crisis grows as spiralling prices spark export bans

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

A global food crisis sparked by Russia’s invasion of Ukraine escalated on Wednesday as Indonesia tightened curbs on palm oil exports, adding to a growing list of key producing countries seeking to keep vital food supplies within their borders.

The conflict in Ukraine is threatening global grain production, the supply of edible oils and fertiliser exports, sending basic commodity prices rocketing and mirroring the crisis in energy markets.

Palm oil is the world’s most widely used vegetable oil and is used in the manufacture of many products including biscuits, margarine, laundry detergents and chocolate. Palm oil prices have risen by more than 50 percent this year.

Indonesia’s Trade Minister Muhammad Lufti said the export curbs aimed to ensure that cooking oil prices at home remain affordable to consumers.

Also Read | Gasoline price hits all time high; aluminium eases

The rise in prices comes at a time when the affordability of food is a major challenge as economies seek to recover from the coronavirus crisis and is also helping to fuel a broader surge in inflation across the globe.

Russia and Ukraine are also important suppliers of edible oils as well as contributing nearly 30 percent of global wheat exports.

Ukraine announced on Wednesday it had banned a wide range of agricultural exports including barley, sugar and meat until the end of the year.

The conflict has not only disrupted shipments from the Black Sea region but is also jeopardising prospects for harvests as fertiliser prices soar and supplies shrink in response to a sharp rise in the cost of natural gas – a key component in the manufacturing process for many products.

World food prices rose to a record high in February to post a year-on-year increase of 20.7 percent, according to the United Nations food agency, while many markets have continued to climb this month.

Also Read | Global Signal: Will oil be higher for longer or see a quick cool-off?

Malaysian palm oil futures rose to an all-time high following Indonesia’s announcement while soybean oil prices jumped to a 14-year peak.

Soybean oil prices have climbed by almost 40 percent this year.

Scrambling For Supplies

Russia and Ukraine are both major producers of sunflower oil and the two countries account for almost 80 percent of global exports, leaving customers such as India scrambling to secure supplies of alternatives such as palm oil and soyoil.

Chicago wheat futures have climbed around 60 percent so far this year, threatening to raise the cost of key food staples such as bread.

The loss of two major exporters in Ukraine and Russia has been compounded by news that the condition of the wheat crop in the world’s top producer, China, may be the “worst in history” according to the country’s agriculture minister.

Poor growing conditions in drought-affected parts of the US Plains look set to further tighten supplies.

Serbia announced on Wednesday it will ban exports of wheat, corn, flour and cooking oil as of Thursday to counter price increases while Hungary banned all grain exports last week.

Also Read | European gas prices hit record highs; here’s an explainer on Russia’s role in global gas market

Bulgaria has also announced it will increase its grain reserves and might restrict exports until it has carried out planned purchases.

Grain supplies in Romania, a major exporter, have also tightened as international buyers seek alternatives to Russian or Ukrainian supplies although there are currently no plans to restrict shipments.

Global grain production could also decline as the production of fertilisers, which help to boost crop yields, is curtailed following a rise in natural gas prices.

Yara, one of the world’s largest fertiliser makers, said on Wednesday it was curtailing its ammonia and urea output in Italy and France.

The Norwegian company warned last week that the conflict was threatening global food supplies.

Russia, which calls its actions in Ukraine a “special operation” rather than an invasion, had been a major supplier of fertilisers but the country’s trade and industry ministry recommended on Friday that producers temporarily halt exports.

Catch all the live updates on the Russia-Ukraine war here

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

World food prices up fourth straight month in Nov, stay at 10-year peak: FAO

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Prices of food the world over increased for the fourth month running in November to remain at 10-year highs. The increase was fuelled by strong demand for wheat and dairy products, the Food and Agriculture Organization (FAO) of the United Nations said today.

FAO’s food price index, which tracks international prices of the most globally traded food commodities, averaged 134.4 points last month compared with a revised 132.8 points in October.

The October figure was previously given as 133.2.

The November reading was the highest for the index since June 2011. On a year-on-year basis, the index was up 27.3% last month.

Agricultural commodity prices have risen steeply in the past year, driven by harvest setbacks and strong demand.

The FAO’s cereal price index rose 3.1% in November from the previous month and was 23.2% higher than its year-ago level, with wheat prices hitting their highest level since May 2011.

FAO said wheat prices were supported by concerns about unseasonable rains in Australia and uncertainty over potential changes to export measures in Russia.

The dairy price index posted the largest monthly rise, up 3.4% from the previous month. “Strong global import demand persisted for butter and milk powders as buyers sought to secure spot supplies in anticipating of tightening markets,” FAO said.

Global sugar prices rose 1.4% on the month and was up nearly 40% year-on-year. “The increase was primarily driven by higher ethanol prices,” FAO said.

The meat price index posted its fourth consecutive monthly decline, shedding 0.9% on the month, while world vegetable oil prices fell 0.3% on October levels, but international palm oil prices remained firm, FAO said.

The Rome-based FAO cut its projection of global cereal production in 2021 to 2.791 billion tonnes from 2.793 billion estimated a month ago, according to its cereal supply and demand outlook.

However, the expected world cereal output would still represent a record, FAO said.

“The month-to-month downgrade is primarily the result of an anticipated marginally smaller global coarse grains outturn, reflecting reduced forecasts for barley and sorghum production,” FAO said.

World cereal utilization in 2021-22 was forecast to rise by 1.7% above the 2020-21 level, hitting 2.810 billion tonnes. FAO’s forecast for world cereal stocks by the close of seasons in 2022 stood at 822 million tonnes, up 2.9 million tonnes since November but still down 0.7% from opening levels.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

World food prices at decade highs; here’s why

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Commodity prices have been rising over the recent past and a similar trend is being seen in international food prices too.

According to October month data from the Food Organization Global, there has been a 3 per cent price rise in the global food index. This third straight month of food price rise has pitched the index at a decade high. The last time food prices had come this close was in July 2011.

The rise comes on the back of strong demand ― household consumption has been rising. These are festival times, holiday times in the global market; so buying has been strong. Apart from that, the HoReCa (Hotel / Restaurant / Catering) segment also is opening up.

Also Read: Commodity supercycle ahead? Experts decode outlook for Samvat 2078

Adverse weather has been reported in major food grain producing countries; this too has supported prices. As a result, for many commodities, the New Year is expected to kick in with opening stocks at multi-year lows.

Markets are also keeping a watch on the soaring fertiliser prices, and supply chain congestion which continues unabated. Port congestion continues to remain high, and container rates have not come down much. The markets are also reacting to the high cost of energy, and reduced harvest in major producing countries like Russia, Canada, and US. All these are supporting prices.

Also Read: Except mustard oil; edible oil prices drop by Rs 5-20/kg, says Food Secretary

Within the index, a couple of factors draw attention ― one, wheat prices are trading at a seven-year high, and two, edible oil prices ― palm oil prices hit record highs in the previous month.

So, looking at the index numbers, cereals have gained by up by 3.2 percent, vegetable oil index has been a major gainer at nearly 10 percent in the previous month alone, and wheat is trading at around nine-year highs ― wheat gained 5 percent in the previous month and 25 percent in the last three months.

So, there are some concerns now, especially for cereals and grains.

Watch the accompanying video of CNBC-TV18’s Manisha Gupta for more details.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

World food prices hit World food prices climb for second month in September; hits 10-year peak10-year peak –FAO

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

World food prices rose for a second consecutive month in September to reach a 10-year peak, driven by gains for cereals and vegetable oils, the United Nations food agency said on Thursday.

The Rome-based Food and Agriculture Organization (FAO) also projected record global cereal production in 2021, but said this would be outpaced by forecast consumption.

FAO’s food price index, which tracks international prices of the most globally traded food commodities, averaged 130.0 points last month, the highest reading since September 2011, according to the agency’s data.

The figure compared with a revised 128.5 for August. The August figure was previously given as 127.4.

On a year-on-year basis, prices were up 32.8% in September.

Also Read: India’s sugar export reaches record 7.23 million tonne in 2020-21: AISTA

Agricultural commodity prices have risen steeply in the past year, fuelled by harvest setbacks and Chinese demand.

The FAO’s cereal price index rose by 2.0% in September from the previous month. That was led by a near 4% increase for wheat prices, with the UN agency citing tightening export availabilities amid strong demand.

“Among major cereals, wheat will be the focus in the coming weeks as demand need to be tested against fast-rising prices,” FAO Senior Economist Abdolreza Abbassian said in a statement.

World vegetable oil prices were up 1.7% on the month and showing a year-on-year rise of about 60%, as palm oil prices climbed on robust import demand and concerns over labour shortages in Malaysia, FAO said.

Palm oil futures have rallied further in early October to hit record highs as a surge in crude oil markets has lent further support to vegetable oils used in biodiesel.

Also Read: Palm oil prices at record high; here’s what it means according to expert

Global sugar prices rose 0.5% in September with concern over adverse crop weather in top exporter Brazil partly offset by slowing import demand and a favourable production outlook in India and Thailand, according to FAO.

For cereal production, FAO projected a record world crop of 2.800 billion tonne in 2021, up slightly from 2.788 billion estimated a month ago.

That would be below world cereal use of 2.811 billion tonne, a forecast revised up by 2.7 million tonne from a month earlier mainly to reflect increased wheat use in animal feed, FAO said in a cereal supply and demand note.

Global cereal stocks were expected to ease in 2021/22 but would still be at a comfortable level, FAO added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

World food prices fall in June for first time in 12 months: FAO

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

World food prices fell in June for the first time in 12 months in the month of June. The volatility in commodity food prices has been the highest in the last decade and many of the food prices in the last couple of months have started to plateau down.

World food prices fell, pushed lower by declines in vegetable oils, cereals and dairy products, the United Nations food agency said on Thursday.

On a month-on-month basis there has been a 2.5 percent of decline but on a year-on-year basis this is still 34 percent on the higher side.

Food and Agriculture Organization’s (FAO) vegetable oil price index plunged 9.8 percent in June, partly on the back of a fall in palm oil prices, which were hit by expectations of output gains in leading producers and a lack of fresh import demand. Soy and sunflower oil quotations also dropped.

The cereal price index dropped 2.6 percent in June month-on-month, but was still up 33.8 percent year-on-year.

Maize prices fell 5.0 percent partly because of higher-than-expected yields in Argentina and improved crop conditions in the United States.

Dairy prices dipped 1.0 percent on a monthly basis, with all components of the index easing. Butter recorded the largest drop, hit by a rapid decline in global import demand and a slight increase in inventories, especially in Europe.

The sugar index posted a 0.9 percent month-on-month gain, reaching its highest level since March 2017. FAO said uncertainties over the impact of unfavourable weather conditions on crop yields in Brazil, the world’s largest sugar exporter, pushed prices up.

International rice prices also fell in June, touching 15-month lows, as high freight costs and container shortages continued to limit export sales, FAO said.

(With Reuters inputs)

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Double whammy for food buyers as freight costs spike amid high grain prices

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Rising costs to ship crops globally are adding to concerns about food inflation that are already at decade-highs and hitting cost-sensitive consumers in import-dependent markets.

The cost of bulk carriers that move grains and oilseeds from production hubs in the Americas and Black Sea to key consumers have roughly doubled from last year due to rising fuel costs, tighter vessel supply and longer port turnaround times amid COVID-19 curbs, according to grain and shipping sources.

“Freight cost has become a real challenge as it comes when we see huge increases in grain prices,” said Phin Ziebell, agri-business economist at National Australia Bank in Melbourne.

“For years, buyers enjoyed low grain and freight prices. I see no immediate end to high freight costs.”

The cost of moving grains from Australia to Southeast Asia has risen to USD 30 a tonne from USD 15 last year, and to USD 55 from USD 25 from the US Pacific Northwest to Asia, shipping sources said.

Ships carrying wheat from the Black Sea to Asia now cost around USD 65 a tonne, from around USD 35 last year.

“It is the cost of bunker fuel and the cost of bulk ships lifting the prices of carrying grains,” said one trader at a leading brokerage in Singapore. “We also have COVID-19 quarantine requirements slowing cargo movement.”

With world food prices having risen at their fastest pace in over a decade in May, the spike in crop freight costs poses a fresh challenge to food importers and policymakers attempting to keep inflation levels in check just as several key economies reopen following coronavirus lockdowns.

And the price of key crops like corn and soybeans are set to remain elevated and volatile through the rest of the northern hemisphere growing season as crops develop.

Chicago corn futures are up roughly 90 percent from a year ago on strong global demand and stressed crops in the United States, while soybeans are up more than 50 percent after drought clipped output in top grower Brazil. Wheat is up around 30 percent from a year ago following growing problems last season.

The double whammy of higher crop and freight prices is pinching buyers in Asia, the top crop consuming region and home to China that accounts for more than half of the world’s soybean purchases. Japan is one of the world’s biggest corn buyers.

For a typical wheat buyer in Indonesia, the world’s second-largest wheat importer, the cost of a 50,000-tonne cargo of food-grade wheat from the Black Sea has jumped by USD 4 million from a year ago to around USD 15 million, with the freight cost alone rising by USD 1.5 million.

Crop price volatility is another challenge.

Benchmark corn futures lurched more than 10 percent higher in the last week of June before slumping 10 percent the following week as weather forecasts shifted market sentiment.

“We have seen a drop in consumption with these high prices,” said a procurement manager at a flour milling company with operations across Southeast Asia. “It is difficult to take a position in a market like this. Millers are reducing purchases.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

World food prices fall in June for first time in a year: FAO

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

World food prices fell in June for the first time in 12 months, pushed lower by declines in vegetable oils, cereals and dairy products, the United Nations food agency said on Thursday.

The Rome-based FAO also said in a statement that worldwide cereal harvests would come in at nearly 2.817 billion tonne in 2021, slightly down on its previous estimate, but still on course to hit an annual record.

The Food and Agriculture Organization’s food price index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 124.6 points last month versus a revised 127.8 in May.

The May figure was previously given as 127.1.

On a year-on-year basis, prices were up 33.9 percent in June.

FAO’s vegetable oil price index plunged 9.8 percent in June, partly on the back of a fall in palm oil prices, which were hit by expectations of output gains in leading producers and a lack of fresh import demand. Soy and sunflower oil quotations also dropped.

The cereal price index dropped 2.6 percent in June month-on-month but was still up 33.8 percent year-on-year. Maize prices fell 5.0 percent, partly because of higher-than-expected yields in Argentina and improved crop conditions in the United States.

International rice prices also fell in June, touching 15-month lows, as high freight costs and container shortages continued to limit export sales, FAO said.

Dairy prices dipped 1.0 percent on a monthly basis, with all components of the index easing. Butter recorded the largest drop, hit by a rapid decline in global import demand and a slight increase in inventories, especially in Europe.

The sugar index posted a 0.9 percent month-on-month gain, reaching its highest level since March 2017. FAO said uncertainties over the impact of unfavourable weather conditions on crop yields in Brazil, the world’s largest sugar exporter, pushed prices up.

The meat index rose 2.1 percent from May, with quotations for all meat types rising as increases in imports by some East Asian countries compensated for a slowdown in China’s meat purchases.

FAO said the slight fall in its estimate for world cereal production this year was principally triggered by a sharp cut to the Brazilian maize production forecast as prolonged periods of dry weather weighed on yield expectations.

Global wheat production prospects also retreated this month, as dry weather in the Near East hurt yield prospects there. By contrast, the forecast for global rice output in 2021 edged up.

The forecast for world cereal utilization in 2021/22 was cut by 15 million tonne from the previous month to 2.810 billion tonne, still 1.5 percent higher than in 2020/21.

World cereal stocks by the close of seasons in 2021/22 are now expected to rise above their opening levels for the first time since 2017/18. “Higher maize stocks foreseen in China account for the bulk of this month’s upward revision to world cereal inventories,” FAO said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

World food price index rises in July, extending rebound

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

World food prices rose in July led by vegetable oils, dairy products and sugar, extending a rebound from the previous month following sharp falls triggered by the coronavirus pandemic, the United Nations food agency said on Thursday. The Food and Agriculture Organization’s food price index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 94.2 points in July versus a slightly revised June figure of 93.1 points.

“Similar to June, further increases in the prices of vegetable oils, dairy products and sugar outweighed lower prices in the meat markets amid overall steady value of the cereal price index,” the FAO said in a statement.

The agency’s vegetable oil price index climbed 7.6 percent in July to reach a five-month high.

Palm oil was buoyed by expected production slowdowns, revived global demand and protracted migrant labour shortages, while soyoil and rapeseed oil were underpinned, respectively, by tightening supply in Brazil and fresh demand in Europe, it said. [POI/]

Vegetable oil demand had been curbed earlier in the year by lockdown measures to counter the novel coronavirus, dampening restaurant and biofuel demand. In dairy, all products tracked by the FAO rose last month, helping the dairy price index rise 3.5 percent and climb back above the pre-pandemic level, the agency said.

Milk powders rose due to strong import demand by Asian buyers amid concern about export availabilities in Oceania. Butter and cheese were supported by robust import demand but remained below pre-pandemic levels, FAO said.

Average sugar prices rose 1.4 percent, with support from rising energy prices and drought-reduced production in Thailand, partly offset by strong sugar crush volumes in Brazil.

In contrast, the FAO’s meat index slipped 1.8 percent and was 9.2 percent below the year-earlier level, as global import demand continued to lag availability despite coronavirus-linked disruptions to slaughtering.

The cereal index was almost unchanged, with sharp gains for maize (corn) and sorghum linked to Chinese purchases of US suppliers offset by weaker rice quotations and stable wheat prices.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow