Why did the global price of agricultural products decrease?
reported Mehr News Agency, the monthly food monitoring and analysis report 2024 published by FAO shows that food prices in many countries assessed by FAO in May and June 2024 It has remained stable at the highest price levels. The continuation of conflicts and severe levels of insecurity have led to disruptions in commercial activities, which has led to an increase in grain prices in Haiti, Myanmar, South Sudan, Sudan and sub-Saharan African countries.
In the countries of the southern continent of Africa, the price of maize as the most important basic commodity has increased due to the widespread and severe drought that has led to a significant reduction of the 2024 harvest compared to the average. The devaluation of the national currency and the steady increase in transportation costs have led to an increase in food prices in domestic markets and an increase in the cost of imports in some countries.
In a part of this report, it is stated: The world price of wheat has decreased in June 2024 due to the increase in supply due to the harvest in the countries of the Northern Hemisphere. The basic price of wheat in the United States has decreased by 8% on a monthly basis. Despite the concern about wet weather conditions in some countries, the imminent start of harvest in the European Union has led to a 3% decrease in prices in this Union. The implementation of the temporary import ban (June 21 to October 15, 2024) by Turkey has also contributed to the reduction of the world price of wheat. On the other hand, the decrease in wheat production in Russia compared to previous forecasts due to adverse weather conditions has caused a 5% increase in the price of wheat in Russia on a monthly basis and has partially compensated for the decrease in global prices.
In the rest of this report, the situation of the corn crop is examined: with the continuation of the corn harvest in Brazil and Argentina, the price of corn in Brazil and Argentina on a monthly scale is 5 and 3 percent, respectively. has decreased The base price of corn in the United States in June has decreased by about 3% due to the surpassing of the sown area and the reported yield compared to previous forecasts, along with the favorable production conditions.
The average FAO rice price index reached 136.6 units in June 2024, which decreased by 0.6% compared to May. On the other hand, the withdrawal of rice buyers from the Philippines until the country’s export tariff changes are clarified by the end of the month was among other factors that caused the price of rice to fall. Meanwhile, the price of long-grain rice in the United States has increased slightly in June.
In June 2024, the FAO oilseeds and meal price index decreased by 4.5 points and reached its lowest level since November 2020. On the other hand, the price index of flour and vegetable oil has increased by 1.1% and 4% respectively since May. While the price index of oilseeds and flour is lower than the price levels of last year, the price index of oilseeds has increased by 13.8% compared to the index of June 2023. The new decrease recorded in the price index of oilseeds shows the lower price of soybeans and rapeseed, so that a major part of the higher price of sunflower seeds has been compensated. After a slight increase in soybean prices in May, world soybean prices fell 5 percent in June due to a favorable production outlook in the United States. In addition, the prolongation of the slow process of import demand has neutralized the effect of the demand for biofuel production by companies and has been effective in reducing the price of soybeans.
Regarding oilseed meal, the slight increase in the price index of these products was due to the slight increase in the price of soybean meal. Despite the significant supply of soy products in the world, the increase in demand for animal feed in animal husbandry has led to an increase in the price of this product.
Vegetable oil price index increased slightly due to the increase in the price of palm, soybean and sunflower oil and the relative stability of sunflower seed prices in May.
