STAT Communications Ag Market News

General Rise in World Food Prices

ROME - Apr 7/16 - SNS -- Soaring sugar prices and strength in palm oil offset losses in dairy products to pull the FAO Food Price Index up 1% in March to 151.0. Even so, the index is down 12.0% from this time last year.

By contrast, the STAT Communications export price index for pulses rose in March to an average 226 points, gaining 2% from February and jumping 29% over the same month last year. There was general strength in pulses, with kabuli chickpeas showing the greatest strength.

The keystone FAO Cereal Price Index fell slightly in March - marking the fifth straight month of decline- amid a favorable supply outlook in the new season. The drop was far more pronounced if compared to last year, as the sub-index is down 13.1% below its March 2015 level.

The FAO Sugar Price Index rose 17.1% from February, reaching its highest level since November 2014. The sharp increase reflects mainly expectations of a larger production deficit during the current crop year, but likely also reported higher use of raw sugar for the production of ethanol in Brazil.

The FAO Vegetable Oil Price Index also rose notably, jumping 6.3% from February, as international palm oil prices surged on the back of prolonged dry weather in Malaysia and Indonesia, by far the world main producers. Soy oil prices were stable, while sunflower and rapeseed oil prices declined.

The FAO Dairy Price Index dropped 8.2% to its lowest level since June 2009, led by plummeting butter and cheese prices. The FAO Meat Price Index was broadly unchanged from last month.

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