The increase in March was largely due to the FAO Vegetable Oil Price Index rising 8.0% from the previous month, reaching its highest level in nearly 10 years.
The FAO milk price index rose 3.9% from February, with butter prices rising due to relatively tight European supplies coupled with rising demand in anticipation of a recovery in the food-service sector.
Powdered milk prices have also risen, supported by an increase in imports in Asia, especially China, due to reduced output in Oceania and scarce shipping containers in Europe and North America.
FAO meat price index also rose 2.3% from February due to Chinese imports and strong internal sales in Europe ahead of Easter as the basis for poultry and pork price hikes.
By contrast, the FAO Cereal Price Index was down 1.8%, but still 26.5% higher than in March 2020. Wheat export prices fell the most, reflecting a generally good supply and favorable production prospects for crop year 2021. Corn and rice prices also fell while sorghum prices rose.
FAO’s sugar price index fell 4% for the month, triggered by the prospect of large exports from India, but still 30% higher than the prices of the previous year.
FAO expects world cereal production in 2021 to increase for the third year in a row and has raised its preliminary forecast for global wheat production due to better crop conditions than previously predicted in some countries.
Global wheat production is forecast to hit a new high of 785 million tons by 2021, up 1.4% from 2020, fueled by strong resilience in most of Europe and expectations for a record harvest in India.
Above-average yields are also expected for maize, with a record-breaking harvest projected in Brazil and reaching a multi-year high in South Africa.
For the current 2020-2021 crop year, global grain use is currently projected at 777 million tons, 2.4% higher than in the previous crop, largely due to higher estimates of rice use Wheat and barley in China, where the livestock industry is recovering from the African swine fever outbreak.
World grain stocks by the end of 2021 are forecast to decline 1.7 percent from the beginning of the crop to 808 million tons. Combined with forecasts for use, the share of global grain stocks for 2020/21 is expected to drop to a seven-year low at 28.4%.
FAO also raised its forecast for world grain trade in the 2020-2021 season to 466 million tons, an increase of 5.8% over the previous season, as crude grain trade grew even faster in relation to China’s unprecedented corn purchases. As for rice products, it is forecasted that international trade will increase by 6% compared to the same period last year.
Source: ndh.vn – Translated by fintel.vn