Source: Bizcommunity, 4 Jun 2020, photo credit: Photka/Getty Images/Woman’sDay
Global commodity food prices fell for the fourth consecutive month in May, as supplies appear strong and demand weakens due to economic contractions triggered by the Covid-19 pandemic.
The Food and Agriculture Organisation of the United Nations (FAO) Food Price Index, which tracks international prices of the most commonly-traded food commodities, averaged 162.5 points in May, 1.9% below the previous month and marking its lowest reading since December 2018.
The dairy price index declined 7.3% from April, led by steep drops in the quotations for butter and cheese due to seasonal supply factors and lower import demand, and averaged 19.6% below its level one year ago. Quotations for milk powders declined only moderately, as low prices and renewed economic activity in China fueled strong buying interests.
The sugar price index bucked the trend, rising 7.4% from the previous month and undoing half of its April decline due to a rebound in international crude oil prices as well as lower-than-expected harvests in India and Thailand, respectively the world’s second-largest sugar producer and second-largest exporter.