2023-10-06 16:53:41
ALGIERS – World food prices remained generally stable in September 2023, compared to August, the Food and Agriculture Organization of the United Nations (FAO) indicated on Friday in its monthly report published on its website web.
“The FAO Food Price Index showed an average value of 121.5 points last month, a level almost identical to that of the month before,” explained the report, specifying that the decline in oil prices vegetables, dairy products and meat offset the increase in the prices of sugar and corn which recorded significant increases.
Thus, the FAO food price index, which tracks the variation in international prices of a basket of basic products, fell by 10.7% compared to its level recorded a year ago and by 24% compared to its level in March 2022, the report said.
During the period under review, the FAO cereal price index increased by 1%. “The increase recorded during the month considered is explained by the 7% increase in international corn prices following seven consecutive months of decline.
The FAO attributes the decline to strong demand for the Brazilian crop, slowed sales in Argentina and a rise in river freight prices in the United States due to low levels of the Mississippi River.
The FAO Rice Price Index fell slightly in September by 0.5%, but its value remains 27.8% higher than a year ago.
In addition, the FAO revised upwards its forecast for global cereal production in 2023, to 2,819 million tonnes, which would constitute a record.
This revision is driven by the increase in estimates for wheat, with better yields expected in Russia and Ukraine thanks to favorable weather conditions.
For the prices of vegetable oils, they fell by 3.9% in September compared to August, which marks its second consecutive month of decline, notes the report, explaining this decline in the index by the decline in global prices for palm, sunflower, soybean and rapeseed oils.
As for the prices of dairy products, they also fell, recording a 2.3% decline compared to the month of August. “This is the ninth consecutive monthly decline in the index, which stood at 23.9% lower than its value recorded in the same month of the previous year.
Meat prices experienced the same downward trend, recording a decline of 1% compared to August.
This is the third monthly decline in a row for the index, the value of which fell by 5% compared to last year.
Poultry meat prices have fallen due to the abundance of supply from the main world suppliers, particularly Brazil.
Sheep meat prices fell for the fifth month in a row but to a lesser extent, driven by high supplies in Australia despite stable demand in China and the Middle East.
On the other hand, the strong import demand for lean beef, particularly in the United States, has led to a rebound in international beef prices despite the high quantity of exportable meat in Brazil and Australia.
On the other hand, global sugar prices rose 9.8% in September compared to August, reaching their highest level since 2010.
According to the UN agency, this surge in prices is mainly due to the fact that there are growing fears of a tightening of global supply during the next campaign (2023-2024).
Indeed, initial estimates indicate a drop in production in the main sugar-producing countries, Thailand and India, due to drier than normal weather conditions, note the report’s authors.
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