Page 4 - Vol.38-No.2

GLOBAL FOOD PRICES RISE IN JANUARY

VEGETABLE OILS AND DAIRY PRODUCTS PUSH
EDITORIAL
FAO FOOD PRICE INDEX HIGHER

The FAO Food Price Index averaged 135.7 points in Jan- back of large harvests in Australia and Argentina. Lower
uary, 1.1 percent higher than in December. The Index harvests and steady purchases by Asian buyers led to a
tracks monthly changes in the international prices of com- 3.1 percent monthly increase in international rice prices.
monly-traded food commodities.
The FAO Meat Price Index increased slightly in January,
The FAO Vegetable Oils Price Index led the rebound in with world bovine meat prices reaching a new peak as
January, increasing by 4.2 percent month-on-month and global import demand exceeded export supplies, while
reversing its December decline to reach an all-time high. ovine and poultry meat prices softened as exportable
Quotations for all major oils rose, also supported by ris- supplies outstripped import demand. Pig meat quotations
ing crude oil prices. Palm oil prices were largely under- rose slightly, in part due to rising input costs dampening
pinned by concerns over a possible reduction in export global supply.
availabilities from Indonesia, the world’s leading export- The FAO Sugar Price Index was the only subindex to post
er, while soy oil prices were supported by robust import a decrease in January, down 3.1 percent from the previous
purchases, particularly from India, rapeseed oil prices month due to favourable production prospects in major
were pushed up by lingering supply tightness, and sun- exporters India and Thailand, as well as improved rains
flowerseed oil quotations were impacted by supply tight- and lower ethanol prices in Brazil.
ness and surging global import demand.
New cereal forecasts
Referring to the latest vegetable oils price increase,
Boubaker Ben-Belhassen, Director of FAO’s Markets and FAO also updated its forecast for world cereal produc-
Trade Division said: “Reduced export availabilities on top tion in 2021, now standing at 2 793 million tonnes, a 0.8
of other supply-side constraints, especially labour short- percent increase from the previous year.
ages and unfavourable weather, largely pushed vegeta-
Global wheat output in 2021 is expected to be on par
ble oil prices up to an all-time high. There is a concern the
with 2020, while the production of coarse grains is pro-
impacts of these constraints will not ease quickly.”
jected to be 1.3 percent larger and that of rice to grow by
The FAO Dairy Price Index increased by 2.4 percent, its 0.7 percent, according to FAO’s latest Cereal Supply and
ÞIWK FRQVHFXWLYH PRQWKO\ ULVH ZLWK WKH VWHHSHVW LQFUHDV- Demand Brief, also released today.
es registered for skim milk powder and butter. Reduced
For 2022, global wheat plantings are expected to ex-
export availabilities from Western Europe and below-av-
pand, buoyed by mostly conducive weather conditions in
erage expectations for milk production in Oceania in the
the northern hemisphere, although high input costs could
months ahead contributed to the tightening in global
deter a larger expansion. The outlook for maize is robust,
dairy markets, as did processing and transportation de-
with high prices pointing to record plantings in Argentina
lays linked to COVID-19-related labour shortages.
and Brazil.
The FAO Cereal Price Index in January increased margin-
Worldwide cereal utilization in 2021/22 is forecast to
ally, by 0.1 percent, from December. Maize export prices
increase by 1.6 percent year-on-year, pointing to a like-
rose by 3.8 percent during the month, spurred by worries
ly decline in the world cereal stocks-to-use ratio to 28.7
about persistent drought conditions in South America,
percent, slightly lower than the previous year’s but still a
while world wheat prices declined by 3.1 percent on the
historically comfortable level.
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