Global food prices rebounded in August

September 2, 2021, Rome - The United Nations food and Agriculture Organization (FAO) report released on the 2nd, sugar , wheat and vegetable oil international prices strong gains, leading to global food prices in August after falling for two consecutive months Pick up quickly
.

 

The FAO Food Price Index averaged 127.
4 points in August, up 3.
1% and 32.
9% month-on-month and year-on-year respectively
.
The index tracks the monthly changes in the international prices of the world's most traded food commodities
.

 

The FAO Sugar Price Index rose 9.
6% month-on-month from July
.
The market is worried that the frost in Brazil, the world's largest sugar exporter, will damage the country's crops and cause prices to rise accordingly
.
Good production prospects in India and the European Union, as well as the decline in crude oil prices and the weak Brazilian real, have restrained the increase
.

 

The FAO Vegetable Oil Price Index rose by 6.
7% in August.
Among them, international palm oil prices rebounded to historical highs, as concerns about production below potential have not been eased, leading to a reduction in Malaysian inventories
.
The quotations of rapeseed oil and sunflower oil also rose
.

 

　　In August, the FAO Cereal Price Index rose 3.
4% month-on-month
.
Harvests in several major exporting countries are expected to decline, and world wheat prices have risen by 8.
8%
.
In contrast, corn prices fell by 0.
9% due to improved production prospects in Argentina, the European Union and Ukraine, which eased the impact of lower production forecasts in Brazil and the United States
.
International rice prices are still in a downward channel
.

 

　　The FAO Meat Price Index rose slightly this month.
The prices of mutton and beef were supported by China's large purchases, while strong import demand in East Asia and the Middle East boosted poultry prices
.
On the other hand, pork prices fell due to the continued shrinking of China's purchases and weak domestic demand in Europe
.

 

　　The FAO Dairy Product Price Index declined slightly from the previous month.
Because of the weak global import demand and the seasonal increase in export supply in Oceania, the international milk powder quotation fell, and its decline exceeded the impact of the increase in butter and cheese prices
.

 

　　Despite lower production expectations, the world's cereal supply remains abundant

 

　　FAO also released the latest issue of "Cereal Supply and Demand Briefing" today.
It is estimated that global cereal production will reach 2.
788 billion tons in 2021, an increase of 0.
7% over the previous year, but a correction from the forecast in July
.

 

　　Current forecasts show that this year's world wheat production will fall by 0.
7% to 769.
5 million tons, mainly reflecting the long-term drought in North America and the negative impact of severe weather in Kazakhstan and Russia
.

 

　　Even in the face of contraction in Brazilian production, global coarse grain production is expected to increase by 1.
3% in 2021, reaching 1.
499 billion tons
.
Global rice production is expected to increase by 0.
9% year-on-year, reaching a record high of 519 million tons.
Vietnam’s record yield level provides support for this forecast
.

 

　　FAO currently predicts that the global cereal consumption in 2021/22 will increase by 1.
4% compared to the previous marketing year, reaching 2.
809 billion tons.
This is due to the strong increase in feed use and the increase in food consumption
.
The forecast for global cereal stocks at the end of the 2022 season has been revised down from the previous month to 809 million tons, a decrease of 0.
9% from the initial level
.
Global rice stocks are expected to reach the second highest level on record, and dry weather is expected to depress wheat stocks, causing US ending stocks to fall to an 8-year low, while Canada’s ending stocks will fall to their lowest level in 40 years
.
Taken together, the ratio of world cereal stocks to consumption is expected to be 28.
1%, lower than 29.
9% in 2021/22.
“However, from a historical perspective, the supply is still at a relatively sufficient level,” FAO said
.

 

　　The current forecast for world grain trade in 2021/22 has been lowered by 1.
3% to 466 million tons.
The expected decline in wheat and coarse grains exceeds the expected increase in world rice trade
.