After a historical record in the month of March as a result of the war in Ukraine, the FAO food price index, which follows the monthly variation in international prices of a basket of basic products, fell 0.6% due to the fall of vegetable oils and dairy products.
After 100 days of war that has destabilized markets and supply chains around the world, this FAO index rises to 157.4 points, although with a 22.8% annual increase registered since May 2021, indicates the organization.
At the same time, wheat prices increased 5.6%, a rise linked “to the announcement of an embargo on exports from India, concerns about crop conditions in several large exporting countries” and a reduction in production projections. in Ukraine.
In one year, this cereal -of which Russia and Ukraine guarantee 30% of world trade- has seen its price increase by 56.2%.
The FAO index for vegetable oils fell by 3.5% at the same time, under the effect of lower prices for palm, sunflower, soybean or rapeseed oil.
“Export restrictions generate uncertainty in the market and can cause a rise in prices and increased volatility,” emphasizes the chief economist of the FAO, Máximo Torero Cullen, who advocates having fluid trade exchanges.
The FAO also forecasts a “likely decline” in world cereal production in 2022 – the first in four years – to 2.7 billion tonnes, 16 million below the record output estimated for 2021.
Source: Ambito
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