Sugar Ethanol Bioenergy Int- The benchmark of world food commodity prices remained largely unchanged in August, as increases in sugar and vegetable oil prices offset declines in cereal and dairy quotations, according to the new report released by the Food and Agriculture Organization of the United Nations (FAO) on Friday.The FAO Food Price Index, which tracks monthly changes in the international prices of a set of globally-traded food commodities, averaged 130.1 points in August, marginally up from the revised July level of 130.0 points and 6.9 percent higher than a year earlier.
The FAO Sugar Price Index averaged 103.6 points in August, up slightly by 0.3 points (0.2 percent) from July after five consecutive monthly declines, but still down 10.3 points (9.0 percent) from its level a year ago. The increase was mainly driven by concerns over Brazil’s production outlook, amid reduced sugarcane yields and low sugar recovery rates in key southern growing regions. Additionally, stronger global sugar import demand, particularly from China, exerted further upward pressure on prices. However, expectations of larger crops in India and Thailand, owing to favourable weather conditions, limited the overall price increase.
The FAO Vegetable Oil Price Index increased by 1.4 percent in August from July, reaching its highest level in over three years. Palm, sunflower and rapeseed oil quotations all increased, partly influenced by Indonesia’s intention to further raise its biodiesel blending mandate next year, while world soy oil prices edged lower amid prospects of ample global soybean supplies in the marketing year ahead.The FAO Cereal Price Index declined by 0.8 percent from July. International wheat prices dropped, driven by larger harvests in the European Union and the Russian Federation, while world maize prices rose, due partly to increased demand for feed use and ethanol production in the United States of America.
The FAO All Rice Price Index eased, weighed down by lower Indica prices amid continued fierce competition among exporters.The FAO Dairy Price Index declined by 1.3 percent from July, with butter, cheese and whole milk powder quotations down amid subdued import demand from key Asian markets.
