The prices of food raw materials mark the first increase after seven months of declines, recording +1.1% in March, although they remain 7.7% lower than the same period in 2023. The FAO announced this, explaining that the reference index is driven by vegetable oils (+8%), dairy products (+2.9%) and meat (+1.7%) compared to February. However, the prices of cereals fell by 2.6% (-20% compared to March 2023), due to the strong competition in exports, as well as those of rice (-1.7%) and sugar (-5 ,4%).
On the cereals front, based on the latest supply and demand report, FAO raised its 2023/24 production forecast to 2,841 million tonnes with usage set at 2,828 million tonnes, up 1.3%. compared to the 2022/23 level. Stockpiles will end the 2024 season at 894 million tonnes, up 2.3% year-to-date, with a global stock-to-use ratio of 31%. World trade will increase by 1.7% compared to the previous year to reach 485 million tonnes. The FAO then predicts that international trade in coarse grains will grow, while that of wheat and rice will probably contract. On wheat, in particular, the forecast for 2024 production will increase by 1% compared to 2023, which currently stands at 796 million tonnes.
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