The Food Price Index of the Food and Agriculture Organization of the United Nations (FAO) reached an average of 133.7 points in December, down 1.2 points (0.9%) compared to November, but higher by 25.1 points (23.1%) compared to the same month in 2020.
The monthly result, according to the FAO, interrupted a sequence of four consecutive highs.
With the exception of the Dairy Price Index, all other sub-indices registered monthly declines, with international vegetable oil and sugar prices falling significantly from the previous month.
In 2021, the Price Index averaged 125.7 points, up 27.6 points (28.1%) above the previous year, with all sub-indices averaging higher than in 2020.
The Cereals price sub-index recorded an average of 140.5 points in December, down 0.9 points (0.6%) compared to November. According to the organization, among the main cereals, international wheat prices fell with an improvement in supply in the Southern Hemisphere and a slowdown in demand.
“However, corn prices were firmer, supported by strong demand and concerns about the persistence of the dry climate in Brazil”, highlighted the FAO.
Sorghum prices rose, in part influenced by corn markets, while barley prices fell slightly, as did rice prices.
In 2021, corn and wheat prices were 44.1% and 31.3%, respectively, higher than their respective 2020 averages, mainly because of strong demand and tighter supply, especially among the top oil exporters. wheat.
The FAO’s monthly survey also found that the Vegetable Oils price sub-index averaged 178.5 points in December, down 6.1 points (or 3.3%) from recent highs.
“The decline was driven by the weakening of palm and sunflower oil prices, while soy and rapeseed oil values remained virtually unchanged month-on-month,” FAO noted.
International palm oil prices fell in December, mainly reflecting subdued global import demand amid concerns over the rise in covid-19 cases.
“In contrast, soy and rapeseed oil prices remained strong, largely supported, respectively, by firm import demand mainly from India and a prolonged tightening of global supply,” the FAO said.
In 2021, the Vegetable Oil Price Index averaged 164.8 points, up 65.4 points (or 65.8%) compared to 2020 and marking an all-time annual high.
In the FAO monthly survey, the Meat price sub-index averaged 111.3 points in December, slightly changed compared to November and 16.5 points (17.4%) above the value of the previous year.
According to FAO, pork prices fell for the sixth consecutive month, mainly because of the reduction in purchases from China.
“International sheep meat prices decreased with the increase in the offer from Oceania, as well as the prices of chicken meat, which were pressured due to the increase in the global offer”, highlighted the entity. In 2021, the Index averaged 107.6 points, 12.1 points (12.7%) above 2020.
Among the different categories, sheepmeat saw the sharpest rise in prices, followed by beef and poultry, while pork prices fell marginally.
The Dairy price sub-index, in turn, registered an average of 128.2 points in December, 2.3 points (1.8%) compared to November and 19.0 points (17.4%) higher than that observed in same month last year.
In December, butter and powdered milk prices rose sharply for the fourth consecutive month, according to FAO.
“The strong import demand persisted, but the supply remained restricted, as a result of lower milk production in Europe and Oceania”, informed the organization.
Despite low milk production, cheese production in Europe increased as producers preferred cheese to alternative dairy, causing a marginal drop in cheese prices.
The FAO also calculated that the Sugar price sub-index averaged 116.4 points in December, down 3.8 points (3.1%) compared to November – the first low in five months.
“The drop reflected concerns about the effect of the Ômicron covid-19 variant on global demand for sugar after the resumption of virus containment measures in many regions,” the organization noted.
The devaluation of the real against the US dollar and the drop in ethanol prices also contributed to the reduction in world sugar prices in December. In 2021, the Index averaged 109.3 points, an increase of 29.8 points (or 37.5%) compared to 2020 and the highest since 2016.
“Throughout the year, concerns about the reduction of production in Brazil amid greater global demand for sugar supported the increase in prices”, highlighted the FAO.
Reference: CNN Brasil
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