Good morning Farmer Family …
US farm markets were mixed but mostly weaker yesterday.
Corn prices closed 0.15% lower.
Soybeans suffered another setback sliding 0.86% lower.
Meal prices bounced during the afternoon trade and closed 0.48% higher.
Soybean oil prices ended the day with 0.68% losses.
Chicago SRW wheat prices squared up in the afternoon, moving 0.17% higher.
Minneapolis spring wheat also rose, closing the session 0.61% higher.
Kansas City HRW wheat prices, in contrast, eased 0.12% lower at the bell.
Corn and soybeans set two-week lows, while some wheat contracts were to their lowest price in almost four weeks.
Notably, corn on the Chicago Board of Trade hit its lowest price since Dec. 20 at $6.48-1/2 before finishing 1 cent lower at $6.52-3/4 a bushel.
Most actively traded soybeans closed down 12-3/4 cents at $14.70-3/4 a bushel after touching their lowest price since Dec. 22 at $14.65 a bushel.
The most-active wheat contract ended up 1-1/4 cents at $7.46-3/4 a bushel, but it earlier set its lowest price since Dec. 9 at $7.36 a bushel.
Concerns about demand and economic headwinds, including the impact of surging COVID-19 cases in China, indeed, continued to hang over agricultural markets.
There’s a lot of doubt, not just for grains but global demand for commodities as a whole.
Analyzing the available numbers this week, we have seen that grains traveling the US railways last week reached another 18,383 carloads, bringing 2022 cumulative totals to 1.157 million carloads.
That is a year-over-year decline of 4.2%.
Census data confirmed 2.427 MMT, or 95.55 mbu, of corn was exported during the month of November.
That was up 17% from October, but only about half of the same month last year.
MYTD shipments for the Q1 reached 280.9 mbu – 13.5% of the USDA full year forecast.
Census also had 728k MT of DDGS exports and 81.441m gallons of ethanol during November.
Monthly soy exports were 9.668 MMT (355.22 mbu) for soybeans, 1.136 MMT for soymeal, and 10,634 MT for soy oil during November.
The official Census data had the bean shipments 1.2% below October and 9.7% below Nov ’21.
For Q1’s total, soybean exports were 792.6 mbu or 38.8% of the USDA full-season forecast.
China was the destination for 71% of the total during the month of November.
As for wheat, monthly data from Census had wheat exports at 1.318 MMT for November.
That was down 4.8% from October and 7.6% form Nov ’21.
Total wheat exports were 11.371 MMT for the MY through November.
Ahead of delayed weekly export sales report from USDA of this afternoon, analysts expect the agency to show corn bookings between 400k MT and 1 MMT from the week that ended 12/29.
New crop sales are estimated below 200k MT for the week.
As for soybean, analyst estimates range 400k to 1.2m MT.
New crop soybean sales are expected below 125k MT.
For soymeal the trade is looking for between 50k and 300k MT sold.
Bean oil bookings are estimated to be less than 12k MT.
As for wheat, traders expect between 200,000 MT and 575,000 MT of old crop wheat was sold.
New crop wheat export bookings are estimated below 100k MT.
Traders also monitored weather in drought-hit Argentina.
Recent rains boosted 2022/23 soybean plantings after delays, the Buenos Aires grains exchange said.
Meantime, according to the latest data from the U.S. Energy Information Administration, ethanol production fell for the fourth consecutive week to a daily average of just 844,000 barrels in the week through December 30.
That was a weekly decline of 119k barrels per day, and the lowest weekly output since February 2021.
Meanwhile, stocks were down by 192k barrels to 24.444 million.
On the weather side, between today and Monday, the Mid-South and much of the eastern Corn Belt should see some additional rains and/or snow, while areas farther west should remain relatively dry through the weekend.
The new 8-to-14-day outlook predicts seasonally wet weather will be likely for most of the central U.S. between January 12 and January 18, with warmer-than-normal conditions probable for most of the country during this time.
In this context, corn basis bids slid 2 cents lower at an Ohio elevator while firming 5 cents at two other Midwestern locations and holding steady elsewhere across the central U.S..
Soybean basis bids were mostly steady to weak across the central U.S., after trending 3 to 5 cents lower at three locations.
An Iowa river terminal bucked the overall trend after firming 5 cents.
Commodity funds were net sellers of CBOT soybean (6,500 lots), corn (2,000 lots) and soyoil futures contracts.
Meanwhile they were net buyers of soymeal and wheat (500 lots) futures.
On this morning, Chicago wheat prices edged higher, but the market is on track for its biggest weekly decline in six months.
Soybeans and corn also ticked up, recouping some of recent losses, but both markets set to end the week in a negative territory.
Notably, the most-active wheat contract on the Chicago Board of Trade gained 0.4% at $7.50-1/2 a bushel, as of 03:09 GMT.
Soybeans added 0.5% to $14.78-1/4 a bushel and corn rose 0.5% to $6.55-3/4 a bushel.
For the week, wheat is down 5.3%, its biggest since July 15, soybeans have lost 3%, the most since end-September and corn has dropped 3.4%, its biggest decline since early December.
For wheat, the availability of abundant low-priced supplies from Russia and Ukraine are giving stiff competition to other global exporters.
Operators are also watching how the U.S. winter crop shapes up for supplies in the second half of the year.
Upcoming showers in Argentine will reduce the stress on crops in southern and western areas, Commodity Weather Group said.
In energy markets, oil prices rose as much as $1 on Friday, extending gains from the previous session.
Brent crude futures, indeed, were 75 cents, or 1%, higher at $79.44 a barrel at 06:45 GMT, after settling 85 cents stronger at $78.69 on Thursday.
U.S. West Texas Intermediate crude futures were up 74 cents, or 1%, at $74.41 a barrel.
They had settled 83 cents higher at $73.67 in the previous session.
China’s reopening optimism, especially further stimulus measures to boost the property sector, is the main bullish factor for the oil prices.
The total number of passenger trips via road, rail, water and air during the upcoming Lunar New Year is expected to reach 2.1 billion this year, transport officials said on Friday, double the 1.05 billion during the same period last year.
Daily passenger flights scheduled during the holiday season beginning on Saturday are averaging 73% of pre-pandemic levels in 2019.
That has improved the Chinese demand outlook in the near year.
In the U.S., data from the Energy Information Administration (EIA) showed on Thursday that distillate inventories, which include diesel and heating oil, dropped more than expected in the week to Dec. 30.
Notably, they fell by 1.4 million barrels, compared with expectations of a 396,000-barrel drop.
However, U.S. gasoline stocks fell 346,000 barrels last week, according to the EIA data, compared with analysts’ expectations for a 486,000-barrel drop.
A softened U.S. dollar has also added upside momentum to the oil markets.
On a weekly basis, however, oil prices were on track to end lower, with both the Brent and WTI contracts down around 7% on a week earlier.
Concern about the possibility of a global recession have weighed on trading sentiment.
In this context, the Saudis are slashing prices as the short-term crude demand outlook seems like it won’t quite get a major boost from a robust China reopening.
In ocean freight markets, the Baltic Exchange’s dry bulk sea freight index extended its decline to hit a near four-month low on Thursday, weighed down by weaker demand across vessel segments as shipping activity remained low.
The overall index, indeed, lost 30 points, or 2.6%, to 1,146, its lowest since Sept. 7.
Notably, the capesize index dropped 12 points, or 0.8%, to a one-month low of 1,504.
Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as coal and steel-making ingredient iron ore, decreased $102 to $12,473.
The panamax index fell 46 points, or about 3.3%, to 1,332, its lowest since Sept. 5.
Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, decreased $414 to $11,986.
The supramax index shed 41 points to $871, its lowest in more than two years.
In equity markets, US stocks on Thursday closed sharply lower.
The S&P 500 fell 1.2% to 3,808.10.
The Dow dropped 1% to 32,930.08.
The Nasdaq slid 1.5% to 10,305.24.
The Russell 2000 index fell 1.1% to 1,753.19.
Stock indexes initially moved higher in overnight trade on positive carry-over from a rally in China’s Shanghai Composite.
Meantime, U.S. Dec ADP employment rose +235,000, showing a stronger labor market than expectations of +150,000.
Nov ADP was revised upward to +182,000 from the initially reported +127,000.
U.S. weekly initial unemployment claims unexpectedly fell -19,000 to a 3-1/4 month low of 204,000, showing a stronger labor market than expectations of unchanged at 225,000.
The U.S. Nov trade deficit shrank to a 2-year low of -$61.5 billion from -$77.8 billion in Oct, a smaller deficit than expectations of -$63.0 billion and a positive factor for Q4 GDP.
On Wednesday, a government report showed a higher than expected number of job openings in November.
The upcoming Labor Department snapshot of hiring in December is a closely watched figure that typically has come in stronger-than-expected when following a robust ADP jobs report.
A strong jobs market exerts upward pressure on wages and reaffirms the central bank’s determination to keep interest rates high to slow economic growth and tame inflation.
On this wake, came hawkish comments from Kansas City Fed President George and Atlanta Fed President Bostic, who both said inflation was still too high and signaled higher interest rates.
That pushed up bond yields.
Notably, the 10-year T-note yield rose +3.7 bp to 3.720%.
Thus, stock losses accelerated.
However, this strategy, though, risks going too far bringing on a recession.
On this morning, Asian shares were mostly higher.
Markets rose in Japan, Australia, South Korea and China in muted trading.
Notably, Japan’s benchmark Nikkei 225 rose 0.6% to finish at 25,973.85.
Australia’s S&P/ASX 200 added 0.7% to 7,109.60.
South Korea’s Kospi gained 1.1% to 2,289.78.
Hong Kong’s Hang Seng erased earlier gains, edging 0.1% lower to 21,024.36.
The Shanghai Composite rose 0.1% to 3,159.72.
Analysts expect economic growth in Asia to slow this year, although China’s easing of COVID-19 restrictions is expected to be a plus.
Data continue to indicate weak economic activity and peaking inflation.
The concerns surrounding financial stability have persisted due to high corporate leverage and housing market weakness, which would be bearish for growth outlook.
In currency trading, the U.S. dollar climbed to 134.08 Japanese yen from 133.40 yen.
The euro cost $1.0520, little changed from $1.0524.
Going back to analyzing the other agricultural markets …
From Canada, Statistics Canada’s November Canadian International merchandise trade report shows total exports falling by 2.3% and total imports down 2.1%.
As a result, the country’s trade balance with all countries moved from a $130 million surplus in October to a $41 million deficit in November, the first deficit reported in three months.
At $7.3 billion, Canada’s trade surplus with the United States fell to the lowest level reported in 11 months, or since December 2021.
Exports reported for the broad Farm, fishing and intermediate food products group were reported at a record $5.9486 billion for the month, up 56.3% from the same month in 2022.
Lentil exports in November totaled 277,858 metric tons, up from the previous month and the largest November exports in six years.
Measured in dollar value, the top three destinations were Turkey, India and United Arab Emirates, with 62% of the total value shipped to these countries.
Cumulative exports at 832,311 mt are up 28.1% from last year and 20.7% higher than the five-year average.
This volume has reached 36.2% of AAFC’s forecast 2.6 million metric tons of exports, ahead of the steady pace needed to reach this forecast.
Canada’s dry pea exports were reported at 193,954 mt in November, down sharply from the previous month and the lowest volume shipped in three months.
Measured in dollar value, Bangladesh and China took close to equivalent amounts that account for 54% of the total value exported.
During the first four months of the crop year, exports to China total 634,252 mt, up slightly from the same period last crop year although is down 34% from the three-year average as China turns to alternate supplies.
Cumulative exports total 1.058 mmt over four months, up 15.2% from the same period in 2021-22 while down 13.6% from the five-year average.
This volume has reached 42.3% of AAFC’s 2.5 mmt export forecast, well ahead of the steady pace needed to reach this volume.
Chickpea exports totaled 21,239 mt in November, the largest volume shipped in five months and the largest November exports seen in five years.
Cumulative exports total 70,860 mt, up 75% from one year ago and 59.5% higher than the five-year average.
Cumulative exports have reached 36.3% of the forecast target of 195,000 mt, which was revised 15,000 mt higher in December.
Exports are slightly ahead of the steady pace needed to reach this forecast.
Soybean exports are seen at 1.272 mmt in November, up sharply from the previous month and the largest monthly exports reported since November 2018.
Measured in dollars, 42.8% of the reported value was realized in shipments to China, with volumes to China rising considerably over the past two months to 556,576 mt in December, also the largest volume shipped since November 2018.
Cumulative soybean exports over three months of the 2022-23 crop year are pegged at 1.957 mmt, down 4.2% from the same period last crop year and 2.2% below the five-year average.
Over three months of the row crop crop year, 46.4% of AAFC’s 4.4 mmt export forecast has been achieved, well ahead of the steady pace needed to reach the current forecast.
Corn exports totaled 233,549 mt in December, the largest monthly movement in six months, with 71% of the total value of these exports realized from business with Ireland and the United Kingdom.
Exports over three months total 320,915 mt, up 20.3% from the same period last crop year and 49.6% higher than the five-year average for this period, and the largest volume shipped in this three-month period in 12 years.
Cumulative exports represent 18.3% of AAFC’s 1.750 mmt export forecast, behind the steady pace needed to reach this forecast.
Corn imports over the month totaled 131,270 mt, the largest monthly volume imported over the three months of the corn crop year.
Cumulative imports of 316,587 mt.
This volume is down 68% from the same period last crop year (Sept-Aug) and 43.8% lower than the five-year average.
The cumulative volume is behind the steady pace needed to reach the current AAFC import forecast of 2 mmt.
Canola oil exports totaled 217,440 mt in November, down from the previous month. Cumulative exports total 881,312 mt, up 5% from the same period in 2021-22 and down 11% from the three-year average.
Canola meal exports were reported at 550,022 mt in November, the largest monthly volume shipped in 20 months.
Cumulative exports total 1.799 mmt, up 21% from the same period last crop year and 13% higher than the three-year average.
Ethanol imports for the month of November are reported at 177 million liters, the largest volume reported in three months.
Imports over the first 11 months of 2022 total 1.621 billion liters, 38% higher than reported one year ago while 43% higher than the three-year average.
In Europe, markets have been a little hesitant yesterday.
Crops seems generally satisfactory in Europe.
However, low prices at the start of the year, combined with a slight rebound in the Black Sea basin, enabled grain market to rebound a bit.
Rapeseed, in contrast, lost ground in the wake of palm and canola.
Uncertainties currently mainly concern the state of the global economy, with the risk of stagflation remaining.
Many questions relate to the dynamics of demand in China which has to deal with an explosion of covid cases.
The European ethanol market was rocked in 2022, as high fuel prices led to mandate reductions across EU member states, while high energy prices cut into producer margins and procurement of grain supplies out of the Black Sea region became challenging.
According to S&P Global Commodity Insights, European fuel ethanol production is projected to rise just 2% on the year to 96,000 b/d, or 5,590 million liters, in 2023.
German and France production is expected to remain steady on the year at 16,000 b/d each in 2023.
The market is set to be well supplied by imports and S&P Globalsees European fuel ethanol imports reaching 12,000 b/d in Q1, 16,000 b/d in Q2, 19,000 b/d in Q3 and 13,000 b/d in Q4, totaling 60,000 b/d in 2023, down from 62,000 b/d in 2022.
A recession could dampen demand for fuel and gasoline, squeezing the ethanol blend pool size.
Demand is set to be further subdued as Poland and the Czech Republic shelve plans to roll out the E10 fuel grade in the near term.
Northern Ireland rolled out the E10 grade in Q4, but its impact on 2023 consumption is expected to be limited on the wider ethanol market due to the low consumption in the country.
Consequently, S&P Globalexpects European fuel ethanol consumption to decrease 3% on the year to 114,000 b/d, or 6,577 million liters, in 2023.
Germany’s fuel consumption is set to fall 1,000 b/d on the year to 23,000 b/d and France’s consumption is expected to decrease 1,000 b/d on the year to 25,000 b/d.
High imports and a weak demand environment offer downside potential to European ethanol prices in 2023.
From Russia, the Kremlin said Putin had ordered a 36-hour ceasefire from midday on Friday after a call for a Christmas truce from Patriarch Kirill of Moscow, the head of the Russian Orthodox Church.
Ukraine spurned the offer.
From Ukraine, during the last ten-day period of December, wintering crops were mainly in winter dormancy.
Some growing processes of winter crops was noted in the southern, western and Dnipropetrovsk oblasts, where the average air temperature over the reported period exceeded +3°С, Ukrhydrometcenter informed.
“The minimum soil temperature at root depth of winter crops decreased to 0°… -4°С on the coldest nights, which is significantly above the critical temperature”, – the experts noted.
Meantime, currently, the ports of Great Odesa are waiting for another 6 ships that are moving for loading through the “grain corridor”, the Ministry of Infrastructure of Ukraine said on January 5.
Since August 1, 626 ships left the ports of Great Odesa, which exported 16.8 mln tonnes of Ukrainian food to the countries of Asia, Europe and Africa.
Over the past two days, 6 ships have left the ports of Odesa oblast carrying a total of 355 thsd tonnes of Ukrainian agricultural products.
Moreover, another 282 thsd tonnes of food are being loaded into 13 ships in the ports.
In the Bosphorus, 102 ships are waiting for inspection by the Joint Coordination Center.
Meantime, in 2023, the World Bank will allocate 50 mln USD to provide Ukrainian elevators with generators or boilers, the Minister of Agrarian Policy and Food Mykola Solsky said, Ukrinform reports.
Also, the World Bank has allocated 100 mln USD to Ukraine for the purchase of wheat and corn for the countries of Asia and Africa in 2023.
However, likely these funds will most likely be redirected to another program, because humanitarian grain is actively purchased under Grain from Ukraine program.
As a reminder, Grain from Ukraine is a food initiative aimed at providing grain to countries on the brink of famine.
It is implemented in partnership with the World Food Program.
The amount of accumulated funds provided by international partners for the initiative is about 200 mln USD.
Recently, the World Food Program purchased another 60 thsd tonnes of Ukrainian agricultural products, Deputy Director of the program in Ukraine Marianna Ward stated on December 5.
The purchased humanitarian grain will be loaded onto two ships in the port of Chornomorsk and sent to Ethiopia.
The first vessel Amira Hana is already waiting for inspection by the Joint Coordination Center.
From Kazakhstan, the railway cargo transportation between Kazakhstan and China exceeded 23 mln tonnes in 2022.
This is 15% more than in 2021, and is a historical maximum, Kazakh railway operator KTZ reported.
In particular, the export of grain cargoes from Kazakhstan in containers increased by 70%.
Taking into account the growing demand for the transportation of goods to China, measures are being taken to accelerate the development of the railway infrastructure, KTZ notes.
The implementation of large infrastructure projects will increase the flow of cargo between the countries, KTZ says.
From the Middle Kingdom, China will auction 140,000 tonnes of wheat from its reserves on Jan. 11, said the National Grain Trade Center in a notice on Friday.
The sale includes 100,000 tonnes bought in 2015, 2016 and 2017 under its minimum purchase price policy, and another 40,000 tonnes of 2014 and 2015 wheat from its temporary reserve.
From Australia, wheat production is expected to rise to a record 42 million tonnes as results from the final phase of harvest show higher yields then expected.
Western Australia, the country’s biggest wheat exporting state, is estimated to produce 16 million tonnes of wheat as compared with earlier expectations of 13 million tonnes.
In December, the Australian Bureau of Agricultural and Resource Economics (ABARES) had estimated wheat production at 36.6 million tonnes in the 12 months to June 30, 2023.
Meantime, the country is poised to ship record volumes in the months ahead.
Ports are almost fully booked for wheat shipments for March and April, and buyers are now looking at May shipments.
However, the higher rainfall that drove the stronger yields has likely resulting in a large portion of the Australian crop developing into average or below-average milling wheat instead of higher protein grades for human consumption.
In this context, as of last week, Australian feed quality wheat is being quoted around $290 a tonne on a free-on-board basis, Australian Standard Wheat is being offered at $300 a tonne and Australian Premium White wheat is around $320-$325 a tonne.
On the international trade scene, Tunisia’s state grains agency is believed to have purchased about 100,000 tonnes of soft wheat and 75,000 tonnes of animal feed barley in an international tender on Thursday.
The soft wheat was bought in four 25,000 tonne consignments.
Two wheat consignments were bought from trading house Viterra, both at $351.86 a tonne c&f, one from Soufflet at $353.82 a tonne c&f, and one from Casillo at $353.89 a tonne c&f.
The barley was all bought from Viterra in three 25,000 tonne consignments at an estimated $318.05, $319.05 and $320.05 all per tonne c&f.
Wheat shipment was sought between Jan. 10 and March 5, 2023, depending on origin selected for supply.
Barley shipment was sought between Jan. 10 and Feb. 28, 2023, also depending on origin selected for supply.
A group of importers in the Philippines is believed to have rejected all offers and made no purchase in a tender for about 110,000 tonnes of animal feed wheat which closed on Thursday.
Prices were regarded as too high while tender participation was also said to be thin.
Shipment was sought in two 55,000 consignments in February and March, 2023.
Offers were also sought for an unspecified combination of feed wheat and barley, but no barley purchase was reported either.
FAO Food Price Index – Jan Update
The FAO Food Price Index averaged 132.4 points in December 2022, down 2.6 points (1.9 percent) from November, marking the ninth consecutive monthly decline and standing 1.3 points (1.0 percent) below its value a year ago.
The decline in the index in December was driven by a steep drop in the international prices of vegetable oils, together with some declines in cereal and meat prices, but partially counterbalanced by moderate increases in those of sugar and dairy.
For 2022 as a whole, however, the FFPI averaged 143.7 points, up from 2021 by as much as 18 points, or 14.3 percent.
Notably, the FAO Cereal Price Index averaged 147.3 points in December, down 2.9 points (1.9 percent) from November, but still 6.8 points (4.8 percent) above its December 2021 value.
Wheat export prices fell in December, as ongoing harvests in the southern hemisphere boosted supplies and competition among exporters remained strong.
World maize prices also eased month-on-month, mostly driven by strong competition from Brazil, although concerns over dryness in Argentina provided some support.
Influenced by spillover from maize and wheat markets, world prices of both sorghum and barley also declined.
By contrast, purchases by Asian buyers and currency appreciations against the United States dollar in some exporting countries kept international rice prices on the rise in December.
For 2022 as a whole, the FAO Cereal Price Index reached a new record high of 154.7 points, up 23.5 points (17.9 percent) from 2021, surpassing by 12.5 points (8.8 percent) the previous annual average record registered in 2011.
World prices of maize and wheat reached new record highs in 2022, averaging, respectively, 24.8 and 15.6 percent higher than their 2021 averages, while rice export prices were on average 2.9 percent above their 2021 levels.
The increase in the FAO Cereal Price Index in 2022 was due to a host of factors, including significant market disruptions, increased uncertainties, higher energy and input costs, adverse weather in a few key suppliers, and continued strond global food demand.
The FAO Vegetable Oil Price Index averaged 144.4 points in December, down 10.3 points (6.7 percent) from November and hitting its lowest level since February 2021.
The decrease in the index in December was driven by lower international quotations across palm, soy, rapeseed and sunflowerseed oils.
World palm oil prices dropped by nearly 5 percent after a short-lived recovery in the previous month, chiefly underpinned by a sluggish global import demand, despite lower outputs in major palm oil producing countries due to excessive rainfalls.
Meanwhile, world soyoil prices fell markedly, largely due to positive prospects of seasonally rising production in South America.
As for rapeseed and sunflowerseed oils, international prices dropped on account, respectively, of ample global supplies and subdued import demand, particularly from the European Union.
Lower crude mineral oil prices also exerted downward pressure on world vegetable oil quotations.
For 2022 as a whole, the FAO Vegetable Oil Price Index averaged 187.8 points, up 22.9 points (13.9 percent) from 2021 and marking a new record annual high.
The FAO Dairy Price Index averaged 139.1 points in December, up 1.5 points (1.1 percent) from November, registering an increase after five months of consecutive declines and surpassing by 10.1 points (7.9 percent) its value a year ago.
In December, international cheese prices rose, mainly reflecting a robust global import demand and somewhat tighter export availabilities amid high internal retail and services sector sales, especially in Western Europe.
By contrast, international butter prices fell for the sixth consecutive month, underpinned by the continued sluggish global import demand and the availability of adequate domestic inventories to cover near-term needs.
Meanwhile, international milk powder prices decreased slightly, as lower prices in Western Europe, driven mainly by sluggish demand for spot supplies, outweighed increases in quotations for supplies from Oceania, primarily reflecting active buying from Southeast Asia and currency movements.
In 2022 as a whole, the FAO Dairy Price Index averaged 142.5 points, up 23.3 points (19.6 percent) from 2021 and registering the highest annual average on record since 1990.
The FAO Meat Price Index averaged 113.8 points in December, down 1.4 points (1.2 percent) from November, marking the sixth consecutive monthly decline, but remained 2.8 points (2.5 percent) above its year-earlier level.
The decrease in the index in December was driven by lower world prices of bovine and poultry meats, partially counterbalanced by higher pig and ovine meat prices.
International prices of bovine meat fell, pressured by a higher supply of slaughter cattle in several large producing countries and lacklustre global demand for medium-term supplies.
Meanwhile, poultry meat prices declined, as export availabilities were more than adequate to meet import demand for spot supplies, despite production setbacks due to intensified avian influenza outbreaks.
By contrast, world pig meat prices increased, underpinned by solid, pre-Christmas internal demand, especially in Europe, whereas ovine meat prices rose due to currency movements.
In 2022 as a whole, the FAO Meat Price Index averaged 118.9 points, up 11.2 points (10.4 percent) from 2021, marking the highest annual average registered since 1990.
The FAO Sugar Price Index averaged 117.2 points in December, up 2.8 points (2.4 percent) from November, registering the second consecutive monthly increase and reaching its highest level in the past six months.
The December increase in international sugar price quotations was mostly related to concerns over the impact of adverse weather conditions on crop yields in India, the world’s second largest sugar producer, and sugarcane crushing delays in Thailand and Australia. For 2022 as a whole, the FAO Sugar Price Index averaged 114.5 points, up 5.1 points (4.7 percent) from 2021 and reaching its highest annual average since 2012.
That’s all, thank you.
We wish you a nice day.
Author: Sandro F. Puglisi
