UN world food price index hits 17-month low

World food prices fell for a fourth consecutive month in May amid economic upheaval from the COVID-19 pandemic and faltering demand.
calendar icon 4 June 2020
clock icon 5 minute read

Vegetable oil prices fell 2.8 percent to a 10-month low, while the meat index slipped 0.8 percent. Poultry and pig meat quotations continued to fall, reflecting high export availabilities and despite an increase in import demand in East Asia.

Bucking the general downward trend, the sugar price index jumped 7.4 percent in April largely because of lower-than-expected harvests in some major producers, notably India and Thailand.

FAO also posted its first forecast for the 2020 cereal season, foreseeing global output of 2.780 billion tonnes -- a 2.6 percent increase on 2019's record harvest.

The agency expects maize to account for much of the anticipated increase, rising a predicted 64.5 million tonnes to 1.207 billion tonnes thanks to anticipated record harvests in the United States, Canada and Ukraine, and near-record harvests in Brazil and Argentina.

Rice production was seen reaching an all-time high of 508.7 million tonnes in 2020, up 1.6 percent on 2019.

By contrast, global production of wheat in 2020 was forecast to drop, largely on the back of likely falls in the European Union, Ukraine and the United States, which would offset expected increases in Russian and Australia, FAO said.

Read more about this story here.

Vegetable oil prices fell 2.8 percent to a 10-month low, while the meat index slipped 0.8 percent. Poultry and pig meat quotations continued to fall, reflecting high export availabilities and despite an increase in import demand in East Asia.

Bucking the general downward trend, the sugar price index jumped 7.4 percent in April largely because of lower-than-expected harvests in some major producers, notably India and Thailand.

FAO also posted its first forecast for the 2020 cereal season, foreseeing global output of 2.780 billion tonnes -- a 2.6 percent increase on 2019's record harvest.

The agency expects maize to account for much of the anticipated increase, rising a predicted 64.5 million tonnes to 1.207 billion tonnes thanks to anticipated record harvests in the United States, Canada and Ukraine, and near-record harvests in Brazil and Argentina.

Rice production was seen reaching an all-time high of 508.7 million tonnes in 2020, up 1.6 percent on 2019.

By contrast, global production of wheat in 2020 was forecast to drop, largely on the back of likely falls in the European Union, Ukraine and the United States, which would offset expected increases in Russian and Australia, FAO said.

Read more about this story here.

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