Global Food Prices Fall To 5-Year Low Levels In April (2)

Istanbul, May 7 (DHA) - Global food prices fell to its lowest levels in April since June 2010, as prices fell in all cathegories excluding meat prices, according to the data released by the Turkstat on Thursday.

The FAO Food Price Index fell to by 2.1 points or 1.2 percent to 171 points on monthly basis and 40.5 points or19.2 percent on annual basis in April, lead by dairy prices which fell most with declines in sugar, cereals and vegetable oils prices, while meat prices rose in April, for the first time since August 2014.

The FAO Cereal Price Index fell by 2.2 points or 1.3 percent to 167.6 points in April, from March and nearly 42 points or 20 percent below the corresponding month last year. Wheat prices continued their decline in April, influenced by large supplies and slow trade

activity, the FAO said, while as many buyers awaited in expectation of even lower prices in the coming months.

"Maize quotations changed little compared to March, with stronger import demand being offset by prospects for more than ample supplies. Rice prices moved marginally lower, on subdued demand" it added.

The FAO Vegetable Oil Price Index fell by 1.5 points or 1.0 percent to 150.2 points in April on monthly basis. The slide was driven by palm oil, the FAO said, the key commodity in the index, as international palm oil quotations continued to ease as higher than expected output in Indonesia and Malaysia coincided with weak global import demand.

Global soy oil prices, increased slightly, reflecting concerns about slower than usual farmer selling and renewed strikes in South America, the FAO added. "Prices for sunflowerseed oil strengthened amid falling world production and export supplies."

The FAO Dairy Price Index fell 12.5 points or 6.7 percent, the strongest fall, to 172.4 points in April, on monthly basis, as milk powders and butter were the main commodities affected.

The price weakness affecting the sector reflects a favourable opening to the April-March dairy year in the EU, combined with the abolition of the milk quota system, which raised expectations of abundant export supplies.

"Dairy prices were also influenced by uncertainty over the level of China's purchases during 2015 and continued import prohibitions imposed by the Russian Federation" FAO said.

The FAO Sugar Price Index fell by 2.4 points or 1.3 percent to 185.5 points in April, its lowest level since February 2009. The decrease was mainly fueled by reports of higher than expected sugarcane harvesting in Brazil, the world's largest producer and exporter of sugar, according to the FAO.

"Also, India's recent announcement it would raise sugar import tariffs from 25 percent to 40 percent, in a bid to support falling domestic prices, weighed on international sugar quotations. Persistent weakness in the Brazilian currency (Real) against the US dollar also kept the FAO Sugar Price Index under pressure" the FAO added.

Meat prices were the only rising cathegory in April to 178 points in April, up by 3 points or 1.7 percent from its revised March value. The main causes of the rise were higher prices for bovine and ovine meat from Oceania, where herd rebuilding restricted exports, the FAO said.

"Pigmeat prices also showed some upward movement, while those of poultry were lower. For meat overall, moderately higher import demand in China, Japan, the United States and Vietnam is the main factor underpinning the market" it added.

(GRAPH)