The cost of agricultural goods in May rose sharply around the world due to a sharp jump in the price of dairy products. Compared to April data, the food price ratio increased by 1.2%, indicating 176.2 points.
Prices for dairy and grain products went up, which led to the May growth. The cost of vegetable oil and sugar at this time kept the same position. FAO's mothballs rose to 5.5%, which is about 11.5% higher than last year. Increased tension is due to the minimum supply of leading countries exporting milk products.
The grain price coefficient in FAO rose by 2.4%, while having reached the highest level since January 2015. Such a denominator exceeds by 17% its value of last year. The increase in quotations is attributed to a number of unfavorable scenarios in the countries that export. The rise in value for fodder grain is still ranked as poor forecasts for yields in South America.
Scenario for 2018: cereal production tends to increase
Specialists suggest that wheat production will be over 750 million tons. The scenario was revised "in plus", which is motivated by the monitoring of forecasting in the production of several leading countries that produce these products. But the production of fodder grain is predicted that the index will be lower by 3.2% compared to the previous year, which is associated with the transition of most farmers to economically profitable crops, as well as droughts in some countries.
The production of rice should increase by 1.3% in comparison with 2017. According to the monitoring of this niche, it will be a maximum of 511.3 million tons.
Recent monitoring and scenarios for the purchase of cereals are highlighted in a new FAO report. It is assumed that next year it will reach the highest rates.
According to new experts' estimates about the world grain reserves - the ratio with consumption - by 28.5% higher. However, in comparison with 2017-2018, this indicator is slightly lower.