Food commodities fell for the sixth consecutive month

To the drop in oil prices, is added as a factor the increase in availability of different types of oil. Palm oil registered a seasonal increase in its Asian productionsoybean had a larger exportable stock from Argentina thanks to the “marked increase in farmers’ sales” while, in the case of sunflower, there was a greater supply from the Black Sea region along with weak demand.

The only exception among all food commodities was cereals, which rose 1.5% monthlyl, which erased the 1.4% drop in August and kept the values ​​11.2% above those of September last year. Wheat rose 2.2% due to the concern in the market due to the dry growing conditions in Argentina and the United States, the great internal demand in the European Union and the uncertainty about the agreement signed by Ukraine and Russia with Turkey and the United Nations Organization (UN).

While, corn was stable, only rose 0.2%, since, according to the FAO, “the strength of the dollar offset the pressure exerted by the prospects of greater supply shortages linked to lower production prospects in the United States and the European Union” . Among the other cereals, barley fell 3% due to the better outlook for crops, sorghum increased 13.2% due to lower production forecasts in the United States, while the various types of rice posted a rise of 2.2%.

Among the other commodities, sugar fell 0.7% at its lowest price since July 2021 due to good prospects in Brazil, the largest exporter, while dairy products fell 0.6%. Scarce milk production, high energy costs, labor shortages coupled with the weakness of the euro against the dollar, as well as “grim” prospects for global economic growth, all played a role in the drop in the milk basket.

Finally, meat had a slight decline of 0.5%, although it maintains a value 7.7% higher than a year ago. Beef fell due to the high exportable stock in Brazil and the high level of liquidation in some producing countries, while poultry fell due to weak demand.