FAO: Drop in Food Prices

Rome – Food markets are more stable and prices for most agricultural commodities are sharply lower than they have been in recent years. World wheat production in 2014 is forecast to reach a new record, it says.

For coarse grains, prospects for near-record production levels, combined with already-high inventories point to a very comfortable world supply and demand balance in 2014/15, especially for maize.

While rice outputs could decline slightly this year, stockpiles remain “huge” and are sufficient to cover over one-third of projected consumption during the 2015-16 period.

All told, world cereal production in 2014 is anticipated to reach 2 523 million tones (2.5 billion tones) — an upward revision of 65 million tones from FAO’s initial forecast in May. World cereal stocks should hit their highest level in 15 years by the end of the cropping season in 2015.

Global output of oilseeds is also forecast to exceed last season’s record due to further expansion of soybean production.

Meanwhile, world production of cassava looks to be on track to achieving another record high, driven by sustained growth in Africa, where the tuber is a strategic crop for food security and poverty alleviation.

Today’s Food Outlook anticipates that world sugar production will increase in 2015-16, as well.

Meat production is set to grow moderately in 2014, but not enough to ease prices from their current high levels, while milk production continues to grow steadily in many countries.

Production of fish is also on the rise, driven largely by aquaculture and less-than-expected El Niño impacts.

Sh. al -Khatib