Cereal price index rises to 1.7%

NaijaAgroNet:

The Food and Agriculture Organisation (FAO) Cereal Price Index rose 1.7 percent in April, its fourth consecutive monthly increase, and is now 15.4 percent above its value a year earlier, reports NaijaAgroNet.

Wheat prices NaijaAgroNet were supported by weather-related risks in the United States, while drought-reduced production in Argentina and lower plantings in the U.S. pushed up international maize prices. Rice prices also rose.

The FAO Dairy Price Index rose 3.4 percent from March, reflecting robust demand for all milk products and apprehensions about export availabilities in New Zealand.

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

Declines were posted in April on the three other sub-indices. The FAO Vegetable Oil Price Index declined by 1.4 percent since March, while the FAO Meat Price Index fell 0.9 percent.

The FAO Sugar Price Index fell 4.8 percent in April from the previous month, continuing a decline that began last December, and averaging 24 percent lower than April 2017. Lower prices reflected a supply glut buoyed by record outputs in Thailand and in India, the world's second-largest sugar producer, as well as the depreciation of the Real, the currency of Brazil, the world's largest producer.

Isaac Oyimah/GEE

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Worldwide Cereal production now @2,640m tonnes

NaijaAgroNet:

The Food and Agriculture Organisation (FAO) has updated its forecast on the worldwide cereal production as at the end of 2017 to stand at 2,640 million tonnes, reports NaijaAgroNet.

This, NaijaAgroNet also discovered is 13 per cent higher than 2016 and an all-time record high.

The forecast, NaijaAgroNet gathered, has been raised by 13.5 million tonnes since December, with coarse grains driving the bulk of the increase, due largely to higher maize output expected in China, Mexico and the European Union.

Also, FAO raised its 2017 production forecasts for wheat, due to expectations of bigger harvests in Canada and the Russian Federation, and for rice, following an upward revision in China.

NaijaAgroNet reports that projected cereal utilization in the 2017/18 season was also raised, now up 1.4 per cent from 2016/17. Just as the upward revision includes a notable jump for coarse grains, whose use for livestock feed is forecast to reach an all-time high on the back of sizable increases projected for Brazil, China, the EU and Mexico.

As cereal output, NaijaAgroNet report, is seen expanding more than utilization, stocks are projected to rise above their already high opening levels, leading to a comfortable world stocks-to-use ratio of 27.7 percent, the highest since 2001/02.

In a related development the international trade volumes, are expected to contract slightly for all the major cereals except maize.

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World cereal production may decline----FAO

NaijaAgroNet

Indications are that world cereal production may decline by  1.5 per cent from what it was  last year due mainly to the reduced acreage planted with maize, even though the effect will be mitigated by "exceptionally high" levels of existing stocks, according to the latest forecasts in FAO's biannual Food Report published May 7, 2015, reports NaijaAgroNet.

FAO's first forecast for global cereal production in 2015, assuming normal weather conditions for the remainder of the season, amounts to 2.509 billion tonnes, a bit down from last year's record but nearly 5 per cent above the average of the past five years.  

The report, NaijaAgroNet further gathered, stated that the modest decline in output would require running inventories down by around 3 per cent in the new season (2015/16), with faster drawdowns for coarse grains and rice than for wheat

"The world food import bill is forecast to reach a five-year low in 2015", the report say, mainly driven by a decline in international prices, low freight rates and a strong US dollar. Import volumes of the various food components of the bill were little changed or even rising. Low income countries are also expected to benefit from lower import bills. 

Several years of solid harvests and stockpiling mean most basic food commodities are in surplus. As a result, the projected drop in cereals output is not expected to impact availability of food for consumption.

Dairy production trends are poised for further steady growth of around two percent in 2015, with lower international prices buoying imports in Africa. The abolition of the European Union's milk quota system is likely to boost output and was one of the main drivers of the 6.7 percent monthly drop in the Dairy Price Index, NaijaAgroNet learnt.

Cyriacus Nnaji/ ED,OPs

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