News

FAO reports first fall of commodity prices in 2018

11 Jul 2018

International agricultural food commodity prices fell in June for the first time in 2018, as trade tensions affected markets even with global production prospects down.

FAO reports first fall of commodity prices in 2018

International agricultural food commodity prices fell in June for the first time in 2018, as trade tensions affected markets even with global production prospects down.

The FAO Food Price Index averaged 173.7 points in June, down 1.3% from its level in May.

The decline was driven primarily by lower benchmark price quotations for wheat, maize and vegetable oils including those made from soybeans.

The FAO Food Price Index is a measure of the monthly change in international prices of a basket of food commodities.

The FAO Cereal Price Index dropped 3.7% in the month. Despite overall worsening production prospects for the main grains, there were "relatively sharp falls" in international maize and wheat prices, reflecting heightened trade tensions. Rice prices increased.

The FAO Vegetable Oil Price Index declined 3.0% from May to reach a 29-month low. Palm, soybean and sunflower oil prices all declined.

Heightened trade tensions between the United States of America and its trading partners, particularly China, weighed particularly hard on the US origin export prices, led by soybeans, with the strength of the dollar exerting further downward pressure.

The FAO Dairy Price Index dropped 0.9% as lower price quotations for cheese - reflecting greater export availabilities in the European Union and the United States of America - more than offseting a rise in Skim Milk Powder prices.

The FAO Meat Price Index inched up 0.3% from May, led by an upswing in ovine and pig meat values.

The FAO Sugar Price Index rose 1.2%, reversing six consecutive monthly declines, due mostly to concerns that dry weather in Brazil, the world's largest sugar producing and exporting country, would negatively affect sugarcane yields and production.

FAO also updated its forecast for world cereal output this year, now pegged at 2 586 million tonnes, which is 64.5 million tonnes or 2.4% less than the record production of 2017.

The new forecast issued today in FAO's Cereal Supply and Demand Brief, is 24 million tonnes less than projected by FAO last month, largely reflecting lower output prospects for wheat in the European Union and for wheat and coarse grains in the Russian Federation and Ukraine.

World cereal utilization is forecast to rise to 2 641 million tonnes in 2018/19.

As utilization is foreseen to outpace new production, global cereal stocks accumulated over the past five seasons will have to be drawn down, by around 7% from their season-opening levels. This should result in the world stocks-to-use ratio for cereals dropping to 27.7%, representing the first decrease in four years - down from 30.6% - although still well above the record low of 20.4% registered in the 2007/08 season.

The inventory drawdown is expected to be largest for maize, while rice stocks may increase for the third year in a row.

World trade in cereals is expected to remain generally robust also in 2018/19, close to near-record level of 2017/18.

Related news

UK High Court allows Oatly to use 'milk' on packaging

UK High Court allows Oatly to use 'milk' on packaging

17 Jan 2024

Oatly has scored a landmark victory in the use of the word milk after the UK High Court ruled against the country’s dairy industry and permitted the term to be used on packaging.

Read more 
How brands are overcoming challenges in the plant-based sector

How brands are overcoming challenges in the plant-based sector

16 Jan 2024

Following the turbulent evolution of the plant-based market in recent years, industry players are finding innovative ways to tackle challenges such as taste, price, and nutrition and are in turn unlocking new opportunities for growth.

Read more 
Mapping the rise and fall and (rise, again?) of the plant-based sector

Mapping the rise and fall and (rise, again?) of the plant-based sector

15 Jan 2024

Recent challenges in the plant-based sector such as consumer acceptance and price inflation led to dips in certain regions while others surged. Kalina Doykova, senior research analyst at Euromonitor, shares her insights into the evolution and future tr...

Read more 
Meet the innovative ingredients showcased at Fi Europe’s New Product Zone

Meet the innovative ingredients showcased at Fi Europe’s New Product Zone

3 Jan 2024

The Food Ingredients category at Fi Europe’s New Product Zone featured 19 distinct and innovative products. From fermented delights to sustainable proteins, these ingredients are ready to make their mark in the market.

Read more 
Fi Europe’s New Product Zone elevates the nutrition of everyday indulgences

Fi Europe’s New Product Zone elevates the nutrition of everyday indulgences

22 Dec 2023

At Fi Europe 2023's New Product Zone, eight health ingredients, each offering an enhanced nutritional profile of various products, were on display. These ingredients address the evolving needs of the food and beverage industry and cater to consumers se...

Read more 
Fi Europe’s New Product Zone explores fresh possibilities with five natural ingredients

Fi Europe’s New Product Zone explores fresh possibilities with five natural ingredients

20 Dec 2023

Fi Europe 2023's New Product Zone unveils five natural ingredients, each catering to the growing demand for clean products and embodying ethical and sustainable choices for today's conscious consumers.

Read more 
Exploring the path to replicating breast milk's magic in infant formula

Exploring the path to replicating breast milk's magic in infant formula

17 Nov 2023

While breast milk is often hailed as nature's gold standard for infant nutrition, it’s not always readily available. Enter infant formula enriched with human milk oligosaccharides (HMOs), a game-changing product that seek to mirror the composition of b...

Read more 
A look at the latest ‘gut health for immunity’ product launches

A look at the latest ‘gut health for immunity’ product launches

25 Oct 2023

From Lipton’s probiotic tea to Babybel’s snack-sized cheeses and smoothie powders, we look at some recent product launches that can benefit immune health by targeting the gut microbiome and a healthier digestive system.

Read more 
Advocacy groups condemn EU Commission for backpedalling on animal rights

Advocacy groups condemn EU Commission for backpedalling on animal rights

3 Oct 2023

Amid rumours that the EU may abandon its plans to improve animal welfare in farming and end the use of cages, many stakeholders have condemned this possibility and urged the EU to reconsider.

Read more 
Meurens Natural: Pioneering the Way in Oat-Based Nutrition

Meurens Natural: Pioneering the Way in Oat-Based Nutrition

12 Sep 2023

Meurens Natural, a European trailblazer in the organic sector for more than 30 years and expert in hydrolyzed oat syrups, powders, and proteins.

Read more