The FAO Food Price Index rose mainly due to higher milk prices.
Global food prices started February with an upward trend, recording an average of 167.5 points, driven by the FAO Food Price Index's 1.7 percent increase from the previous month and partly due to the sharp rise in milk prices.
The index, which is the indicator of the monthly changes in international prices of the food products basket, is currently at its highest level since August 2018; however, when compared to the same month of the previous year, it is seen that there is a decrease of almost 2.3 percent.
FAO Grain Price Index remained at an average of 169 points in February due to the stable corn prices, showing a slight increase since January.
The FAO Vegetable Oil Price Index rose 1.8 percent to reach 133.5 points, the highest level since October 2018. High pricing in palm oil, soybean oil and sunflower oils was considered the main reason for the increase in February.
The FAO Meat Price Index rose slightly, driven by higher cattle and pork prices.
The FAO Dairy Index rose 5.6 percent from January on strong import demand for traded Skim Milk Powder, Fatty Milk Powder and cheese. The expected seasonal decline in butter production also caused an increase in butter prices.
The FAO Sugar Index rose 1.2 percent from January on the back of concerns about overproduction estimates in some producing countries.
Global grain markets were supplied in sufficient quantity in 2018/19 despite low production.
Also, in the Grain Supply and Demand Summary published today, FAO reduced its worldwide 2018 grain production forecast by 2.8 million tons from January to 2 609 million tons. The latest revision is almost based on lower United States corn production and reinforces the year-on-year decline in global grain production as well.
FAO's forecasts for global grain use and stocks for the 2018/19 season fell this month. However, in 2018/19 the global grain yield to use ratio (stocks to be used) remained relatively quiet, down 30.5 percent from 2017/18 to 28.3 percent in 2018/19.
International trade estimates of FAO in all grains in the 2018/19 season remained only above 413 tons compared to the previous month and decreased by 2 million tons. Among the main grains, global wheat trade is expected to decline the most, at around 800 000 tonnes, mainly with weak sales in many Asian and South American countries.
FIRST WHEAT PRODUCTION FORECAST FOR 2019
Although most of the Northern Hemisphere winter wheat harvest is still in the dormant phase, FAO's initial estimate of global wheat production in 2019 remained stable at 757 million tonnes. At this level, this year's output is still below the record level reached in 2017, despite an increase of 4.0 percent from the level reached in 2018.
Source : tarimpusulasi.com