Sugar Prices Drop Due to Increased Production in Brazil
Grain Prices Rise Amid Higher Corn Prices
Last month, global food prices showed a decline for the second consecutive month.
On the 8th, the Ministry of Agriculture, Food and Rural Affairs announced that the Food Price Index released by the United Nations Food and Agriculture Organization (FAO) last month was 124.9, down 1.6% from the previous month. This index is based on the average prices from 2014 to 2016, set at 100 for comparison. It rose to 127.7 in November last year, then fell to 127.0 in December, and recorded 124.9 last month, marking two consecutive months of decline.
By category, prices of sugar, oils and fats, and meat decreased, while prices of dairy products and grains increased. The sugar price index was 111.2, down 6.8% compared to the previous month. This decline is attributed to increased sugar production in Brazil and the Indian government's decision to resume sugar exports, which had been restricted since October 2023.
The oils and fats price index fell 5.6% to 153.0. Prices of palm oil and canola oil decreased, while prices of soybean oil and sunflower oil remained relatively stable without significant changes.
The meat price index recorded 117.7, down 1.4%. Lamb prices fell due to decreased demand, and pork prices dropped due to import bans caused by foot-and-mouth disease outbreaks in Germany and an oversupply situation. Poultry prices also declined as supply increased, but beef prices rose due to continued import demand.
The dairy price index rose 2.4% to 142.9. Cheese prices increased globally due to rising import demand, while prices of butter and whole milk powder decreased.
The grain price index fell 0.3% to 111.7. Corn prices rose due to supply shortages and downward revisions of production and stock forecasts. Wheat prices declined due to poor export performance, and rice prices dropped amid intensified competition among exporting countries.
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