The FAO food price index fell for the sixth month in a row
The average value of the FAO Food Price Index (FPI) fell for the sixth consecutive month, falling 1.1% or 1.5p in September from August to 136.3p, down 5.5% or 7.2p exceeds the indicator of September 2021.
At the same time, the CPI value for grain grew by 1.5% or 2.2 p to 147.8 p compared to August, which is 11.2% or 14.9 p higher than the September 2021 figure. World wheat prices rose by 2.2% in September due to uncertainty regarding the operation of grain corridors in the Black Sea. They were supported by the lack of precipitation in Argentina and the USA, as well as the dynamics of wheat exports from the EU against the background of a shortage of corn supplies. Fodder grains in September rose in price by 0.4%, in particular corn - by 0.2%, as the strengthening of the US dollar compensated for a decrease in crop forecasts in the EU and the US amid uncertainty over exports from Ukraine. World barley prices fell 3% on forecasts of a good harvest in Australia and the Russian Federation, while sorghum rose 13.2% on forecasts of a cutback in US production. Rice prices rose by 2.2%, the most for Indian varieties due to changes in the country's export policy and floods in Pakistan.
The average value of the CPI for vegetable oils decreased by 6.6% or 10.8 p in comparison with August to the lowest level since February 2021 - 152.6 p. Palm oil prices in September decreased for the sixth month in a row due to significant inventories and seasonal increasing production. At the same time, soybean oil prices, after a slight increase in August, slightly decreased in September against the background of increased exports from Argentina. Sunflower oil prices fell to a 14-month low due to increased export offers from Black Sea countries amid weak import demand. Rapeseed oil is falling in price on forecasts of record world production in 2022/23 MR. In addition, lower oil prices are putting pressure on vegetable oil markets.
The average CPI for dairy products in September decreased by 0.6% or 0.8p to 142.5p , but was 20.7% or 24.4p higher than in September 2021. The decline in prices, which are denominated in US dollars, the decline of the euro against the dollar and the reduction of demand for medium-term supplies on expectations of a slowdown in the world economy contributed to this. Although the demand for fast deliveries remains high, especially from Asian countries.
The CPI value for meat in September decreased by 0.5% or 0.6p to 121.4p , which is 7.7% or 8.7p higher than in September 2021. Due to currency fluctuations, lamb prices fell the most . Beef became cheaper under the pressure of a significant supply from Brazil and other producer countries. Prices for pizza meat fell due to reduced demand, even as supply decreased due to bird flu outbreaks in some exporting countries. Pork prices rose again due to the shortage of offers in the EU.
The CPI for sugar fell 0.7% or 0.8p to its lowest since July 2021 at -109.7p on the back of a good harvest in Brazil and lower ethanol prices. Forecasts of a significant global harvest in 2022/23 MY are putting pressure on prices, but they are supported by a shortage of global sugar supply.
