The Food Price
Index
by the Food and Agricultural Organisation (FAO) has shown optimistic favourable production for the year 2013.
The index made available to NaijaAgroNet shows that this is
coming after
three months of decline, while increases in oil and fats prices offset lower cereals
and sugar quotations whereas dairy and meat values remain unchanged.
FAO's
monthly Cereals Supply and Demand
Brief available to NaijaAgroNet indicated that the
revision mostly reflects adjustments to maize production estimates in China,
North America and the European CIS countries.
But
even at the new level, the brief stated that global cereal output would still
be 2 per cent down on record.
However,
FAO early prospects for 2013 cereal production point to increase world wheat
output, contributing largely to this prospect in an estimated 4 to 5 per cent
increase in the area under wheat in the European Union, where weather
conditions have also been generally favourable so far, but in the United
States, the outlook is less favourable, which is attributed to because the
condition of the crops are reported to be very poor.
FAO
Senior Grains Economist, Abdolzreza Abbassia said that even with the tight
supply situation, the weather still remains an important determinant of prices.
“So,
cereals productions need to increase this year in order to avoid unexpectant
price surges,” he said.
NNEKA
ALAMAEZE/LS
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