If you compare last December with the same month of 2021, food prices are already 1% lower, completely reversing the increases registered in 2022 due to the war.
If one takes into account, instead, 2022 as a wholethe values they averaged 143.7 points, an increase of 14.3% compared to the 2021 average.
The food, along with the Energyrepresented one of the great drivers of the global inflationary shock of this year.
“The calm in the prices of food commodities is welcome after two very volatile years,” he celebrated maximum bullfighterFAO chief economist in a statement.
Nevertheless, with prices still above the average of the last 10 years, noted that “it is important to remain vigilant and mitigate global food insecurity as prices remain highwith many risks associated with future offerings.”
The vegetable oils in its varieties of palm, soybean, sunflower, and rapeseed led the descents in December, with a drop in its index of 6.7% per monththus reaching the lowest level since February 2021.
This is due to the lower global demand for imports and prospects of increased production of soybean oil in South America, explained the FAO, to which is added the lower world oil value which discouraged its use as a substitute fuel.
In the case of cerealsprices fell 1.9% monthlyeven though closed 2022 with a historical record, rising 17.9% and 8.8% compared to 2021 and the previous record from 2011, respectively.
During 2022, the corn and wheat averaged values 24.8% and 15.6% higher than those of 2021due to “significant market disruptions, uncertainty, higher energy and input costsadverse weather conditions in some key producers, and strong global demand.”
The December lows are explained by the harvests in the southern hemispherewhich they increased the offer world exportable wheatand in the specific case of Brazil, of the corn.
Influenced by the drop in wheat and corn, also sorghum and barley fell.
As opposed, increased the value of rice due to strong Asian demand and the appreciation of the currencies of the exporting countries against the dollar.
Among the other commodities, the sugar closed 2022 with the highest prices since 2012. In December, rose 2.4% reaching its highest level in the last six months.
For their part, the dairy products they registered a 1.2% increase in December after five consecutive months of fallsending 2022 with a annualized increase of 19.6% compared to 2021, the highest average since 1990.
The highest international values of cheese pushed up the index in December due to its robust global demand and less availability to export.
While, butter and powdered milk values fell.
Lastly, the meat decreased 1.2% monthly in December, the sixth consecutive monthbecause of the decreases in the international value of bovine and poultry meat.
In the case of the bovineFAO indicated that the values were seen impacted by low global demand in the medium term and excess cattle to slaughter in producing countries, while that of corral was affected by a exportable excess supplydespite complications from bird flu.
In return, there was increases in the flesh of pig -because of the strong demand at parties, especially in Europe- and the sheep.
Meat prices, however, averaged 10.4% more in 2022 than in 2021and reached the highest annual average since 1990.
In the Argentine case, the exports of beef decreased slightly in November and fell for the fourth consecutive month, according to the latest report from the Chamber of Industry and Commerce of Meat and Derivatives (CICCRA). Thus, a drop of 12.2% was accumulated in relation to the peak observed in July.
But what deepened in November, and significantlywas the contraction of the average price. Between May and October it fell almost continuously, but at a “moderate” rate, while in November the decrease was almost 17% per month. All of this caused a sharp decline in export earnings, of 17.3% monthly in November and 36.9% compared to the peak reached in May of the year that has just ended.
Source: Ambito
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