FAO FOOD PRICE INDEX UP MARGINALLY IN APRIL
The FAO Cereal Price Index rose 0.3 percent from March, ending a three-month declining trajectory. Global wheat export prices stabilized in April as strong competition among major exporters offset concerns about unfavorable crop conditions in parts of the European Union, the Russian Federation, and the United States of America. Maize export prices increased, influenced by high demand amidst mounting logistical disruptions as a result of infrastructure damages in Ukraine and concerns about the production in Brazil ahead of the main harvest. The FAO All-Rice Price Index declined by 1.8 percent, due largely to falls in Indica quotations driven by harvest pressure.
FAO also released a new Cereal Supply and Demand Brief, slightly raising its forecast for the world total cereal production in 2023 to 2 846 million tonnes, a 1.2 percent increase from the previous year. The forecast for world cereal utilization was increased to 2 829 million tonnes, mostly reflecting higher than previously anticipated feed use of maize and barley. Global maize utilization is now expected to rise 1.6 percent over the year, while that for wheat rises by 1.9%. World cereal stocks are forecast to end the 2024 season at 890 million tonnes, a 2.1 percent increase from the outset of the year. FAO also adjusted its forecast for global wheat production in 2024, now standing at 791 million tonnes, less than previously expected but still marking an increase of 0.5 percent from 2023.
(Link: VietnamAgriculture)
LARGER SECOND CROP TO BOOST ARGENTINA’S SOY PRODUCTION
Argentina’s soybean production is expected to increase in 2024-25, with a larger planted second soy crop, according to a report from FAS, Production is estimated at 51 million tonnes, up 1.5 million tonnes from the previous harvest. Soybean planted acreage is forecast to increase to 17.8 million hectares. Wheat planting is expected to decrease due to low prices and low returns. Corn planting is expected to decrease for similar reason but also fueled by fear of the impact of the chicharrita to yields. The FAS maintains a production estimate of 49.5 million tonnes for 2023-24, about 500,000 tonnes below the USDA official estimate. Crush and exports in 2024-25 are also expected to recover to 40 million tonnes and 7.3 million tonnes, respectively.
(Link: WorldGrain)
