Agri Picks Report April 08, 2024: Geojit

commodities

Geojit's report on Daily Agri Picks

The United Nations Food and Agriculture Organization's Food Price Index was at 118.3 points in March, up 1.1% from the revised level for February, the agency said in a report. The index was down 9.9 points or 7.7% from a year ago. "Increases in the price indices for vegetable oils, dairy products, and meat have slightly more than offset a decrease in those for sugar and cereals," FAO said. The cereal price index fell 2.6% on month and 20% on year to 110.8 points in March. The decline can be attributed to a drop in global wheat prices for the third consecutive month in March, primarily due to strong competition among European Union countries, Russia, and the US in terms of exports. Ample supplies from Australia and the US amid cancelled wheat purchases by China, also contributed to the decline in prices, the report said. Maize export prices edged marginally upwards on month due to more buying by China. "Logistical difficulties in Ukraine and elsewhere also provided some support to maize prices, although it was countered by seasonal pressure in Argentina and Brazil where harvests are underway," the report said. Global prices of barley fell, while those of sorghum increased in March. The FAO All Rice Price Index declined 1.7% in March, largely reflecting subdued global import demand, it said. The vegetable oil price index was up 8% month-onmonth at 130.6 points in March, at a one-year-high. "The marked rebound reflected higher price quotations across palm, soy, sunflower and rapeseed oils," FAO said. International palm oil prices continued to increase in March, underpinned by seasonally lower output in leading producing countries, which coincided with firm domestic demand in southeast Asia. However, global prices of soyoil recovered from multi-year lows, mostly due to robust demand from the biofuel sector, particularly in the US and Brazil. Similarly, sunflower and rapeseed oil prices recovered amid rising global import demand. Higher crude oil prices also contributed to the increase in vegetable oil prices, according to the report. The dairy price index was up 2.9% on month at 124.2 points in March, marking the second consecutive monthly increase, though it was down 8.2% on year. In March, global cheese prices rose the most, reflecting the steady import demand from Asia, higher sales in western Europe and a seasonal drop in production in Oceania. International butter prices increased further in March, mainly due to good seasonal demand and somewhat tighter stocks in Europe. The meat price index was up 1.7% on month at 113.0 points in March, the second consecutive monthly increase. On year, it was down 1.5%. International poultry meat prices increased in March, underpinned by steady demand from leading importing countries. Prices of pork also increased, mainly reflecting higher internal demand ahead of the Easter holidays, notwithstanding increased supplies, especially in Western Europe. "World bovine meat prices continued to rise in March, mainly due to increased purchases by leading importing countries," the agency said. The sugar price index fell 5.4% on month to 133.1 points in March after two consecutive monthly increases due to a decline in international sugar price quotations, mainly driven by the upward revision of the 2023-24 sugar production forecast in India and the improved pace of sugar harvest in Thailand at the final stage of the season.On year, however, sugar prices were up 4.8%. Persisting concerns over the crop in Brazil, negatively affected by prolonged dry weather conditions, continued to exacerbate seasonal trends and limit the drop in prices. Higher international crude oil prices also helped limit the fall in global sugar prices, the report said.

For all commodities report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

08042024 - co