International

Four consecutive months of decline for FAO Meat Price Index

Reduced purchases of pig meat by China led to lower international quotations.

Posted on Dec 03 ,07:38

Four consecutive months of decline for FAO Meat Price Index

The FAO Meat Price Index dropped in November by 0.9%, which marks the fourth month of continuous decline. Despite that, the figure is still 16.5 points (17.6%) above the value registered in the same month a year ago.
Last month, international prices for pork decreased for the fifth month in a row, due to a reduction in purchases by China, especially from the European Union. Sheep meat prices also fell sharply due to increased supplies, mainly in Australia.
Meanwhile, international beef prices remained stable, as the decline in Brazilian beef prices was offset by higher export values ​​in Australia, as the country is currently rebuilding its herd.
Poultry meat prices were also stable as global supply seemed sufficient to meet demand despite constraints, such as shortages of shipping containers and avian influenza in Asia and Europe.
Other commodities included in the FAO Food Price Index have followed an opposite trend, with one exception. The FAO Dairy Price Index led November’s aggregate rise, increasing by 3.4% from the previous month. Strong global import demand persisted for butter and milk powders as buyers sought to secure spot supplies in anticipating of tightening markets.

The FAO Cereal Price Index increased by 3.1% in November from the previous month and was 23.2% higher than its year-ago level. Maize export prices rose slightly and international rice prices remained broadly steady, while wheat prices hit their highest level since May 2011. The increase reflected strong demand amid tight supplies, especially of higher quality wheat, while prices were also supported by concerns about untimely rains in Australia and uncertainty regarding potential changes to export measures in the Russian Federation.

The FAO Sugar Price Index was 1.4% higher in November than in October and nearly 40% above its level in November 2020. The increase was primarily driven by higher ethanol prices, though large shipments from India and a positive outlook for sugar exports by Thailand tempered the upward pressure on quotations.

The FAO Vegetable Oil Price Index declined by 0.3% from a record high reached in October, reflecting lower values for soy and rapeseed oils as well as lower crude oil prices. International palm oil prices remained firm.
In total, the FAO Food Price Index averaged 134.4 points in the month, its highest level since June 2011 and 1.2% higher than during October. The index, which tracks monthly changes in the international prices of commonly-traded food commodities, was 27.3% higher than its level in November 2020.

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