Ripples Advisory, Wheat, maize led global food price rise for a consecutive month in March
Second monthly rise indicates trend will continue in near term
Wheat and maize led global food price increases for a consecutive month in March, due to forecasts of lower output this year following unfavourable weather.
A report on Thursday by the Food and Agriculture Organization (FAO) of the United Nations showed a 1.1 per cent rise in its Food Price Index in March to 172.8 points. At this level, it was 0.7 per cent above its value of the corresponding month last year.
As in February, the month-on-month increase was driven primarily by stronger global prices of cereal and dairy products. Whereas the price of sugar and vegetable oils fell further and those of meat rose only slightly.
“Prospects for wheat production in 2018 are more restrained, given less favourable weather conditions and lower prices. The latest forecast for world wheat production in 2018 stands at 750 million tonnes, down seven mt from the 2017 near-record level. Despite mostly favourable crop conditions in the European Union, the winter wheat output is forecast to fall, mostly on account of a reduction in sowings. In Asia, harvesting of the 2018 crop is underway. Outputs in China and India, the largest wheat producing countries, are foreseen to contract marginally from the record highs of 2017,”
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