World food prices last month dipped for a second consecutive month after hitting a record high in March, although the cost of cereals and meat rose, the Food and Agriculture Organization (FAO) said yesterday.
The UN food agency’s food price index, which tracks the most globally traded food commodities, averaged 157.4 points last month versus 158.3 for April.
The April figure was previously put at 158.5.
Photo: AFP
Despite the monthly decline, last month’s index was still 22.8 percent higher than a year earlier, pushed up in part by concerns over the effects of the Russian invasion of Ukraine.
In separate cereal supply and demand estimates, the FAO said it expected global cereal production would drop in this and next year’s season for the first time in four years, easing 16 million tonnes from record levels last year to 2.784 billion tonnes.
While the dairy, sugar and vegetable oil price indices all fell last month, the meat index edged up to hit an all-time high, while the cereal index climbed 2.2 percent, with wheat posting a 5.6 percent month-on-month gain. Year-on-year, wheat prices were up 56.2 percent.
The FAO said wheat prices were shunted higher by India’s announcement of an export ban, as well as reduced production prospects in Ukraine following the Russian invasion.
The vegetable oil price index dropped 3.5 percent from April, pushed down in part by Indonesia lifting a short-lived export ban on palm oil.
“Export restrictions create market uncertainty and can result in price spikes and increased price volatility. The decrease in oilseeds prices shows how important it is when they are removed and let exports flow smoothly,” FAO chief economist Maximo Torero Cullen said.
The dairy index also dropped 3.5 percent month-on-month, with the price of milk powders shedding the most because of market uncertainties tied to continued COVID-19 lockdowns in China.
The meat index rose 0.6 percent in May, with stable world beef prices and falling pork prices offset by a steep increase in poultry prices.
Issuing its first forecast for global cereal production, the FAO predicted declines for maize, wheat and rice production, while barley and sorghum outputs were forecast to increase.
“The forecasts are based on conditions of crops already in the ground and planting intentions for those yet to be sown,” the FAO said.
World cereal utilization was forecast to ease this and next year by 0.1 percent from last year’s levels to 2.788 billion tonnes — the first contraction in 20 years.
China’s economic planning agency yesterday outlined details of measures aimed at boosting the economy, but refrained from major spending initiatives. The piecemeal nature of the plans announced yesterday appeared to disappoint investors who were hoping for bolder moves, and the Shanghai Composite Index gave up a 10 percent initial gain as markets reopened after a weeklong holiday to end 4.59 percent higher, while Hong Kong’s Hang Seng Index dived 9.41 percent. Chinese National Development and Reform Commission Chairman Zheng Shanjie (鄭珊潔) said the government would frontload 100 billion yuan (US$14.2 billion) in spending from the government’s budget for next year in addition
Advanced Micro Devices Inc (AMD) suffered its biggest stock decline in more than a month after the company unveiled new artificial intelligence (AI) chips, but did not provide hoped-for information on customers or financial performance. The stock slid 4 percent to US$164.18 on Thursday, the biggest single-day drop since Sept. 3. Shares of the company remain up 11 percent this year. AMD has emerged as the biggest contender to Nvidia Corp in the lucrative market of AI processors. The company’s latest chips would exceed some capabilities of its rival, AMD chief executive officer Lisa Su (蘇姿丰) said at an event hosted by
AVIATION: Despite production issues in the US, the Taoyuan-based airline expects to receive 24 passenger planes on schedule, while one freight plane is delayed The ongoing strike at Boeing Co has had only a minor impact on China Airlines Ltd (CAL, 中華航空), although the delivery of a new cargo jet might be postponed, CAL chairman Hsieh Su-chien (謝世謙) said on Saturday. The 24 Boeing 787-9 passenger aircraft on order would be delivered on schedule from next year to 2028, while one 777F freight aircraft would be delayed, Hsieh told reporters at a company event. Boeing, which announced a decision on Friday to cut 17,000 jobs — about one-tenth of its workforce — is facing a strike by 33,000 US west coast workers that has halted production
TECH JUGGERNAUT: TSMC shares have more than doubled since ChatGPT’s launch in late 2022, as demand for cutting-edge artificial intelligence chips remains high Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday posted a better-than-expected 39 percent rise in quarterly revenue, assuaging concerns that artificial intelligence (AI) hardware spending is beginning to taper off. The main chipmaker for Nvidia Corp and Apple Inc reported third-quarter sales of NT$759.69 billion (US$23.6 billion), compared with the average analyst projection of NT$748 billion. For last month alone, TSMC reported revenue jumped 39.6 percent year-on-year to NT$251.87 billion. Taiwan’s largest company is to disclose its full third-quarter earnings on Thursday next week and update its outlook. Hsinchu-based TSMC produces the cutting-edge chips needed to train AI. The company now makes more
RSS