World cereal export prices rose in May

Published Jun 13, 2024

Tridge summary

The FAO cereal price index experienced a 6.3% increase in May, reaching 118.7 points, but remained 8.2% lower than May 2023. This surge was primarily due to concerns about the 2024 harvest, with growing conditions negatively affecting production in Europe, North America, and the Black Sea region. Additionally, damage to Black Sea shipping infrastructure and issues in Argentina and Brazil's cereal production have contributed to the price hike. As a result, all main export cereals' prices have increased, with wheat seeing the most significant rise. This trend is observed in maize, barley, sorghum, and rice prices, largely driven by production concerns and strong global demand.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The FAO cereal price index averaged 118.7 points in May, 7.1 points (6.3 percent) more than in April, but still 10.6 points (8.2 percent) lower of the value recorded in May 2023. World prices of all main export cereals increased compared to the previous month, with wheat prices rising the most. The strong monthly rise was largely due to growing concerns about unfavorable growing conditions affecting the 2024 harvests, which are likely to limit yields in some of the key production zones of several major exporting countries, particularly parts from Europe, North America and the Black Sea region. Furthermore, damage to shipping infrastructure in the Black Sea contributed to upward pressure on prices. Maize export prices also increased in May, reflecting production concerns in Argentina (due to crop damage caused by the spread of the Spiroplasma kunkelii disease) and Brazil (due to unfavorable weather conditions), along with weak farmers' sales activity in Ukraine, in a context of ...
Source: 3tres3
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