There was a recent report that was released by the UN’s Food, and Agriculture Organization (FAO) experienced a slight decrease in world food prices despite the outrageous hike in the price of food in the world in April, The food agency also reported a moderate decrease in the prices of some food, such as vegetable oils and cereals, as of last Friday.
The big boom in March
The Food Agency Organization Food Price Index this agency analyzes monthly changes in the international prices of a basket of regularly traded food commodities, so prices are measured by the number of baskets of food sold in the world market; the price fell by 0.8 percent from its all-time high in March and averaged 158.5 points in April, however, it was still 29.8% higher than last year April, Many economics experts around the world are warning everyone that the hike in prices of food is going to be permanent; the increment is going to continue till further notice; the Food and Agriculture Organization (FAO) also reported that there was a 3% drop in prices of foods in April, The world decreased in demand for the following foodstuffs vegetable oil, palm oil, sunflower and soy oil in April led to an approximately 6% decrease in price.
The Food and Agriculture Organization (FAO) April Was Dragged Down by a 3% Drop in World Maize Prices.
The small decrease in the world food price index is excellent news, especially in third world countries with food deficits and are dependent, but food prices are still very high, just little changes. Hopefully, it could, but no one knows when, reflecting on the persistent market tightness, and it is posing a severe threat to global food security for the most vulnerable, according to FAO chief economist Maximo Torero Cullen.
Even the world wheat prices have also been affected heavily; this is due to Ukraine vs. Russia war and concerns about crop conditions in the United States, according to the FAO, but was mitigated by larger supplies from India and higher-than-expected exports from Russia. Even the price of rice in the international food market has also been affected, and it has been hit with an increase of 2.3 percent since March; there is still a possibility it will go higher than that in June The FAO reduced its forecast for world wheat production in 2022 from 784 million tons to 782 million tons, down from 784 million last month.
The Food, Agriculture Organization Sugar Price Index report also showed a significant increase in the price of sugar and an increase of 3.3 percent in the recent month, The meat price index also followed sugar by jumping as high as 2.2 percent, and the dairy price index globally for food Increased by 0.9 percent from the previous month. Separate projections of cereal production and demand it was also affected but not fully confirmed, but they predicted a 1.2 percent drop in world trade cereal in the 2021-2022 marketing year compared to the year 2020, when there was high inflation. The drop in the predicted price index of influenced by the maize and other coarse grains around the market, whereas rice left the family because rice trade volumes are high, and it’s expected to increase by 3.8 percent and wheat trade volumes by 1.0 percent, these were according to the last report.
Increase in cereal index price
Within the years 2021-2022, there is a prediction economist expert predicted high consumption of 0.9% for cereal and a possibility of going higher than that the following year. One economics and business expert, on fox news also predicted that there would be several record-breaking increases in the prices of food; he deduced it from the fact there are high energy consumption rates which will cause high rood consumption.
By the end of this year, the new estimates of world cereal stocks will now stand at 856 million tons. There’s a high decline comparing it with previous years, at the forecast could confirm that it had a 20 % decline, Well, this is coursed by the war on the harvested places in Ukraine. Also, the lack of rainfall in Morocco has caused a decline in the agricultural production in the country, The estimate that was released also showed that Brazil would have a record-breaking this in maize; planting surveys carried out this estimate also predicted that there would like to be a slightly 4% decline in the maize production.