June 4, 2020 11h27
Updated at 20h43
The global index of food prices to the lowest in 17 months
PARIS — The global index of food prices fell in may to its lowest level in 17 months, reflecting the weakness of demand due to the pandemic on the background of the inventory record, announced on Thursday that the United Nations Organization for food and agriculture (FAO).
For the fourth consecutive month, the monthly indicator of the FAO, which follows the price changes of five food commodities (dairy products, sugar, cereals, oils and meats), has decreased, amounting to 162,5 points in may (- 1.9% compared to April), the lowest since December 2018, the FAO said in a press release.
The strongest decline was recorded by the dairy products (- 7.3% from April and 19.6 per cent since may 2019), following large falls in world prices of butter and cheese, in oversupply in many parts of the world, while import demand has declined due to the crisis.
Next to cereals, the index FAO shows a decline of 1 % since April, in particular due to the projected global stocks relatively abundant and a decline in corn prices, u.s. 16 %, compared to may 2019.
For vegetable oils, the decline of the index is 2.8 %, driven by the continued drop in the price of palm oil for the fourth consecutive month, due in particular to increased inventories than expected in exporting countries and a moderate decrease of the global demand for import.
The index FAO meat price declined by 0.8 % compared to April, and 3.6% compared to may, 2019. Apart from the beef, which have increased, global prices of poultry and pork have fallen due to “availability to export the most important in the producing countries”.
Index-FAO sugar is the only one to have increased (+ 7.4% compared to April), after a surge in crude oil prices, and crop less important than anticipated in India and Thailand, respectively the world’s second largest sugar producer in the world and the second largest exporter.