Agri Commodities Preview: FAO Global Food Index Rises By 2.7% In April

The latest update of the Food and Agriculture Organization of the United Nations (FAO) stated that the world prices of cereals and dairy products continue to rise as sugar continues to decrease.

The FAO Food Price Index remained steady in April, averaging 173.5 points for the month, a slight increase from March and 2.7% higher than in the same month of 2017.According to the FAOs first forecasts for the 2018-19 marketing season, cereal supplies should be sufficient to meet consumption requirements. Global cereal crops output in 2018 is expected to fall to 2.607 billion tonnes, about 1.6% below the near-record harvest of 2017.

The FAO forecasts world rice production to increase by 1.3% to reach 510.6 million tonnes, setting a new record high and attributes the increase primarily to expanded cultivations in Asia.As for cereal utilization, the FAOs forecast for cereal utilization, both food and feed, is anticipated to be another record high of 2.626 billion tonnes.