Latest news with #commodity
Reuters
3 days ago
- Business
- Reuters
World food prices dip in May as cereal, sugar and vegoils drop
PARIS, June 6 (Reuters) - Global food commodity prices declined in May, driven by marked drops in cereal, sugar, and vegetable oil prices, the United Nations' Food and Agriculture Organization said on Friday. The FAO Food Price Index, opens new tab, which tracks monthly changes in a basket of internationally traded food commodities, averaged 127.7 points in May, reflecting a 0.8% decrease from the April figure. The May reading was up 6% from a year earlier but over 20% below a March 2022 peak following Russia's full-scale invasion of Ukraine that started a devastating war between two of the world's leading grains producers. The FAO cereal price index fell 1.8% month-on-month, led by a sharp drop in global maize prices. Strong harvests and ample supplies in Argentina and Brazil, along with expectations of a record crop in the United States, weighed on prices. Wheat prices edged lower due to improved crop conditions in the northern hemisphere. By contrast, rice prices rose 1.4%, supported by firm demand for fragrant varieties and currency movements. Vegetable oil prices declined 3.7% from April, with declines across all major oils. Palm oil prices fell due to seasonal output increases in Southeast Asia. Soy oil prices dropped on higher South American supplies and weak demand for biofuel. Rapeseed oil eased on improved European Union supply prospects, while sunflower oil declined amid weak global demand. The FAO sugar price index decreased by 2.6%, reflecting concerns over the global economic outlook, weaker demand from food and beverage industries, and expectations of a production recovery next season. Meat prices rose 1.3% from April. Beef, pork and sheep meat prices increased, with beef reaching a record high. Poultry prices declined, pressured by surplus supplies in Brazil following import restrictions linked to a bird flu outbreak. The FAO dairy price index rose 0.8%, supported by strong demand from Asia. Butter prices remained at historic highs, while cheese and whole milk powder prices also increased. In a separate report, the FAO forecast record global cereal production of 2.911 billion metric tons in 2025, up from 2.848 billion in its previous estimate and 2.1% above 2024. With production expected to surpass consumption, global cereal stocks are anticipated to grow by 1.0%, partially recovering from last year's contraction.
Zawya
15-05-2025
- Business
- Zawya
Sweet treat, bitter pill: Why your next chocolate bar will cost more?
A sharp drop in cocoa production in Ghana and Côte d'Ivoire—two of the world's top producers—is driving up global prices and is expected to make cocoa powder and chocolates more expensive, a new report warns. The African Export-Import Bank's (Afreximbank) March 2025 Commodity Market Updates report, cocoa supply from the two West African countries, which together produce about 65 percent of the world's cocoa, has been hit by adverse weather, ageing trees, shifting trade policies and limited financing. Accordingly, cocoa prices have remained elevated after emerging as the best-performing commodity in 2024, soaring by over 170 percent on the London Intercontinental Exchange (ICE) and climbing to a record high of $12,565 per tonne in New York.'With market fundamentals remaining constrained, competition among traders for available stocks has increased. This has fuelled a sustained bull run in cocoa prices, raising questions about whether consumer demand for chocolate can withstand currently elevated price levels,' the report says. While structural challenges persist, prices are likely to remain elevated throughout 2025, unless production fundamentals show significant improvement.'Africa's cocoa output fell by over 16 percent in the 2023/24 season, dropping from 3.71 million tonnes to 3.1 million tonnes. Production shortfallCôte d'Ivoire, the world's largest producer, saw a year-on-year decline of 22.3 percent to 1.74 million tonnes, while Ghana, the second largest producer, experienced an even steeper drop of 26.6 percent to 480,000 tonnes. According to the report, these supply challenges contributed to an estimated global deficit of 374,000 tonnes. However, the report says that, despite record-high cocoa prices, the impact on demand may be more gradual than initially feared, largely because cocoa consumption in Europe and the US — the key indicators of market absorption — has so far remained relatively resilient. Cocoa for EU grown inside deforested land in top source countries, report saysThe remarkable price rally reflects a combination of short-term market dynamics and deeper structural shifts in cocoa supply chains, the report states.'Supply chain bottlenecks, exacerbated by logistical challenges and shifts in farmer incentives, have added to the volatility, heightening concerns over long-term production capacity,' the report says.'As expected, cocoa markets responded sharply to the production shortfall, triggering a strong price rally in the futures markets. Cocoa contracts moved into deep backwardation—a condition where near-term prices trade at a significant premium to future contracts, reflecting immediate supply tightness.'Harmattan windsThe report states that adverse weather conditions in West Africa have partly fanned the relentless surge in cocoa prices. For instance, at the start of 2024, severe Harmattan winds swept across West Africa, significantly reducing cocoa arrivals at ports in Côte d'Ivoire and Ghana. The Harmattan is a seasonal wind originating from the Sahara Desert and typically occurs between December and March.'The changing weather patterns continues to raise concern that the 2024/25 season could witness an earlier onset of Harmattan conditions, particularly in Côte d'Ivoire, potentially amplifying price volatility in an already bullish market,' the report says. In addition to the weather-related disruptions, structural production issues have also constrained cocoa supply, particularly in Ghana. According to the report, forecasts point to a decline in Ghana's cocoa yields over the long term, largely driven by ageing cocoa trees. Around 25 percent of the country's two million hectares of cocoa plantations are estimated to be over 40 years old. Older trees have significantly lower yields, making replanting essential to sustain production. However, farm renewal is a slow and costly process, and is now exacerbating supply pressures in the market. Another factor undermining cocoa production in West Africa is the Cocoa Swollen Shoot Virus Disease (CSSVD), which is more prevalent in Ghana than in Côte d'Ivoire. This disease is considered the most economically damaging of all cocoa viruses, with severe strains capable of reducing yields by up to 50 percent. In 2024, Ghana's gold exports are estimated at $11 billion, dwarfing cocoa's $2 billion and underscoring the gold's position as the country's top export despite its global cocoa prominence. The sharp rise in gold prices has intensified the expansion of small-scale, unregulated artisanal gold mining, which has encroached on cocoa farms and poses significant risks to both cocoa production and the environment. Apart from the challenges posed by adverse weather, structural issues and competition from other commodities, the report states that the illicit cross-border trade of cocoa has emerged as a major concern for industry regulators in Ghana. According to the report, smuggling has significantly reduced Ghana's exportable cocoa surplus, resulting in the postponement of up to 350,000 tonnes of cocoa beans originally scheduled for the 2023/24 season. Similarly, Côte d'Ivoire suspended forward sales due to concerns over supply availability.'The resulting short covering of unfulfilled contracts in the futures market intensified price pressures, amplifying the bullish momentum in cocoa futures,' the report says. Both short-term disruptions and structural constraints have significantly impacted cocoa supply and demand fundamentals. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
Washington Post
06-05-2025
- General
- Washington Post
How I got hooked on tinned fish as sustainable and delicious seafood
Ask an ecologist (or connoisseur), and they'll tell you that sardines, herring, anchovies and their pelagic brethren are the heroes and delicacies of the ocean. Not that I don't appreciate a silky slice of nigiri or hefty tuna sub. My childhood memories of albacore on a slab of crusty Italian bread (with a cream soda, please) remain the best. But I eventually concluded the collateral damage was too high. Rendering these fish — predators equivalent to wolves or tigers on land — into a can of commodity protein didn't sit well with me.
