Rice production and consumption is expected to reach an all-time high
Prez August the mean value of index of food prices of FAO – The Food and Agriculture Organization of the United Nations, which tracks monthly fluctuations in world food prices, was 120.7 points, slightly lower than July’s revised figure and 1.1 percent lower than the corresponding level in August 2023 .
The index of cereal prices of FAO fell 0.5 percent from July levels, mainly as a result of lower global wheat export prices due to price competitiveness from the Black Sea region and higher-than-expected wheat production in Argentina and the United States. In contrast, global maize prices rose slightly, mainly due to the impact of heatwaves on crops in parts of Europe and North America, while FAO’s all-rice price index rose 0.6 percent, led by more the high quotations of non-Indian varieties of rice.
Archive photo of Agro Plovdiv
The index of vegetable oil prices of FAO rose 0.8 percent from its July value to its highest level in twenty months, with higher global palm oil prices offsetting lower soybean, sunflower and canola oil prices.
In August, the index of the prices of dairy products of FAO also increased by 2.2 percent. Whole milk powder prices rose on the back of a rapid increase in import demand for spot supplies. Global cheese prices also strengthened on stronger import demand, while global butter prices hit an all-time high, fueled by growing uncertainty about the adequacy of milk supplies in Western Europe.
Compared to July, the index of meat prices of FAO decreased by 0.7 percent. Amid weak import demand, poultry, pork and lamb prices fell, while world beef prices, on the contrary, rose slightly.
In August, the index of sugar prices of FAO fell 4.7 percent to its lowest level since October 2022. The decline was mainly due to improved prospects for sugarcane harvests in India and Thailand, as well as lower global crude oil prices. However, concerns about the impact of fires on sugar cane crops in key growing areas in Brazil sent world sugar prices soaring in late August.
World grain production
FAO’s forecast for global cereal production in 2024 was also cut to 2,851 million tonnes, close to 2023 levels.
According to the new summary of cereal supply and demand published on Friday, the decrease was mainly due to the deteriorating outlook for coarse grains, including corn, mainly due to hot and cold weather conditions in the European Union, Mexico and Ukraine conditions. At the same time, FAO raised its forecast for world wheat and rice production in 2024, which could bring world rice production to a new record of 537 million tonnes.
Total grain consumption in the 2024-2025 season is expected to reach 2,852 million tonnes, an increase of 0.2 percent compared to the 2023-2024 season. Rice consumption is expected to reach an all-time high as it is expected food consumption to grow rapidly.
Global cereal stocks at the end of the 2025 season are forecast to increase by 1.2 percent, bringing the global cereal stocks-to-consumption ratio to 30.7 percent in the 2024-25 season.
Global grain trade is forecast at 485.6 million tonnes, down 3.3 percent from the 2023-24 season, mainly due to a lower forecast for coarse grain trade.
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