Global food prices hold steady | ||
But cereals markets remain tight | ||
 Global food prices held almost steady in April 5 May 2011, Rome - Food prices remained virtually steady in April after falling in March following eight months of successive increases, FAO announced today. However, while the FAO Food Price Index averaged 232 points in April, little changed from March, it was still 36 percent above April 2010 and only two percent below its peak in February 2011. A fall in sugar prices and a decline in rice helped stabilize the index, but international prices of nearly all other food commodities remained firm. "A sliding dollar and increased oil prices are contributing to high food commodity prices, particularly grains," said David Hallam Director of FAO's Trade and Market Division. "With demand continuing strong, prospects for a return to more normal prices hinge largely on how much production will increase in 2011 and how much grain reserves are replenished in the new season." Wheat and maize prices rise There was little change in the index because although international grain prices increased sharply in April, the rise was more than offset by declines in dairy, sugar, and rice, while oils and meat prices were mostly unchanged. The FAO Cereal Price Index averaged 265 points, up 5.5 percent from March and 71 percent from April 2010. Maize prices rose 11 percent and wheat increased four percent in April 2011 as a result of unfavourable weather and planting delays. But large export supplies kept rice prices under downward pressure. The FAO Oils/Fats Price Index, which had fallen by seven percent in March, was nearly unchanged in April. The FAO Sugar Price Index averaged nearly 348 points, down seven percent from March and 17 percent below its January record. The FAO Dairy Price Index averaged 229 points, down 2.4 percent from March. A good start of the northern hemisphere season has kept prices from rising after seven months of steady growth. The FAO Meat Price Index, although at a record level, remained stable as compared to a revised estimate of 172 points in March. Cereal market to remain tight Latest indications point to a recovery in world cereal production in 2011 in response to high prices providing more normal weather conditions prevail. World wheat production is expected to increase by 3.5 percent and rice by three percent. But world cereal stocks for the crop seasons ending in 2011 are forecast to decline to their lowest level since 2008, mostly due to depleting coarse grain inventories. Global wheat inventories are forecast to decrease too, but the wheat stock-to-use ratio will remain relatively comfortable, while rice inventories are even expected to rise. "Although the early outlook for cereal production in 2011 is good, weather in the coming months will be critical," said FAO grain analyst Abdolreza Abbassian. "Production prospects for 2010 were extremely favourable at this time last year but unfavourable weather conditions between July and October changed that outlook drastically. "Among all the cereals, maize is the most worrisome," Abbassian noted. "This year we would need above-average, if not record, yields in the United States for the maize situation to improve but maize plantings so far have been delayed considerably due to cool and wet conditions on the ground." | ||
FAO Food Price Index
The FAO Food Price Index is a measure of the monthly change in international prices of a basket of food commodities. It consists of the average of five commodity group price indices (representing 55 quotations), weighted with the average export shares of each of the groups for 2002-2004. In February, FAO revised the composition of the Meat Price Index. This resulted in adjustments to the historical values of the FFPI. For more information please visit this site.
Monthly release dates for 2011: 03 February, 03 March, 07 April, 05 May, 07 June, 07 July, Summer Recess, 08 September, 06 October, 03 November, 01 December.
Release date: 05/05/2011 | |
 | » The FAO Food Price Index (FFPI) averaged 232 points in April 2011, virtually unchanged from the revised March estimate, 36 percent above April 2010, but 2 percent below its peak in February 2011. A sharp increase in international grain prices in April more than offset declines in dairy, sugar, and rice, while oils and meat prices were mostly unchanged. » The FAO Cereal Price Index averaged 265 points, up 5.5 percent (14 points) from March and 71 percent from April 2010. Unfavourable weather and planting delays resulted in international prices of grains to rebound after a decline in March, with wheat and maize prices gaining 4 percent and 11 percent respectively. However, large export supplies kept rice prices under downward pressure. » The FAO Oils/Fats Price Index, which had fallen by 7 percent in March, was nearly unchanged in April. The stabilization of prices stems primarily from a strong recovery in production and rising inventories of palm oil in Southeast Asia. Meanwhile, soybean oil prices remained unchanged as concerns about plantings in the United States were compensated by reports of ample harvests in South America. » The FAO Sugar Price Index averaged nearly 348 points, down 7 percent (or 25 points) from March and 17 percent below its January record. The recent decline was prompted by prospects of increased market availability, as the new crushing season begins in Brazil, and larger than anticipated production in Thailand. » The FAO Dairy Price Index averaged 229 points, down 2.4 percent from March. A good start of the northern hemisphere season has put prices under downward pressure, after seven months of moderate but unrelenting growth. » The FAO Meat Price Index remained stable (compared to a revised estimate of 172 points in March) at a record level of nearly 173 points, overtaking the 10-year peak of 170.4 points in August 2008. The recent rise in the index reflects a surge in beef and sheep meat prices. Go to Global Food Price Monitor, for details on domestic food price developments. |
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