World food prices fall 11th month in Feb., down 19% from record high

In February, the world value index of the United Nations meals company declined for the eleventh consecutive month, leading to a 19% lower from the height reached in March final 12 months following Russia’s invasion of Ukraine.

The Food and Agriculture Organization’s (FAO) value index, which tracks essentially the most globally traded meals commodities, averaged 129.8 factors final month towards 130.6 for January, the company stated Friday. It was the bottom studying since September 2021.

The month-to-month replace stated the decline within the index mirrored decrease costs for vegetable oils and dairy merchandise, which greater than offset a steep rise in sugar costs.

The FAO cereal value index fell by a marginal 0.1% month-over-month in February, with a marginal rise in wheat costs, greater than offset by decrease rice costs.

Vegetable oils fell by 3.2% and dairy by 2.7%, whereas sugar rose by 6.9% to a six-year excessive due largely to a downward revision to manufacturing in India.

Lower wheat manufacturing

In a separate report on cereals provide and demand, the FAO issued a primary preliminary forecast for international wheat manufacturing in 2023, with a year-over-year decline to 784 million tons seen though the crop would nonetheless be the second highest on report.

“In Ukraine, severe financial constraints, infrastructure damage and obstructed access to fields in parts of the country have resulted in an estimated 40% year-over-year reduction in the 2023 winter wheat area and a well below-average wheat output is anticipated in 2023,” the FAO stated.

The decline was partially offset by an anticipated rise in U.S. manufacturing to 51 million tons, with excessive costs resulting in a rise in wheat sowings to the best degree since 2015.

The FAO raised its forecast for world cereal manufacturing in 2022 by 9 million tons to 2.77 billion tons, though that might nonetheless be 1.3% decrease year-over-year.

The report stated the majority of the upward revision associated to rice, with an improved outlook for manufacturing in India.