Food costs fall in June, cereal output seen somewhat greater, U.N. firm states

A consumer searches meat choices and waits to be serviced at Paulina Meat Market in Chicago, Illinois, U.S., June 28,2022 REUTERS/Bianca Flowers

ROME, July 8 (Reuters) – World food costs succumbed to a 3rd successive month in June, however stayed near to tape-record high levels embeded in March, the United Nations’ food firm stated on Friday.

The Food and Agriculture Organization’s (FAO) food cost index, which tracks the most internationally traded food products, balanced 154.2 points last month versus a modified 157.9 for May.

The May figure was formerly put at 157.4.

Despite the month-to-month decrease, the June index was still 23.1%greater than a year previously, rose by the effect of the Russian intrusion of Ukraine, issues over negative weather condition, strong worldwide need and high production and transportation expenses.

” The aspects that drove international rates high in the very first location are still at play,” stated FAO Chief Economist Maximo Torero Cullen.

In different cereal supply and need price quotes, the FAO raised its projection for worldwide cereal production in 2022 to 2.792 billion tonnes from a formerly offered 2.784 billion. This is still 0.6%except the world output in 2021.

FAO’s cereal index dropped 4.1%from May, however was still up 27.6%year-on-year. FAO stated June’s decrease was driven by the seasonal accessibility from brand-new harvests in the northern hemisphere, enhanced crop conditions in some significant producing nations, and greater production potential customers in Russia.

The grease cost index fell 7.6%month-on-month, lowered by seasonally increasing output of significant producing countries and the potential customers of increased materials from Indonesia.

The sugar index fell 2.6%from May, with slowing international financial development weighing on need.

The meat index increased 1.7%in June, setting a brand-new record high, while the dairy index leapt 4.1%month-on-month. World milk powder rates increased on strong import need and relentless international supply tightness.

FAO stated its increased projection for cereal output was mostly driven by a 6.4-million-tonne upward modification made to the coarse grain production quote.

The projection for world cereal utilisation in 2022/23 was likewise raised, up 9.2 million tonnes to 2.797 billion tonnes. This still represented a 0.1%dip on 2021/22 levels, primarily showing expectations of lower feed usage.

FAO approximated that world cereal stocks at the close of seasons in 2023 would amount to 854 million tonnes, up 7.6 million tonnes from last month’s projection, however nevertheless a year-on-year decrease of 0.6%.

Editing by Crispian Balmer

Our Standards: The Thomson Reuters Trust Principles.