FAO predicts more balanced food commodity markets in 2013-2014
Food commodity markets are becoming more balanced and less price volatile than in recent years thanks to improved supplies and a recovery in global inventories of cereals, according to the United Nation’s Food and Agriculture Organization's (FAO) Food Outlook report published in November.
With the world cereal harvest forecast to surge 8% to a record 2,498 million tons in 2013. The sharp increase in 2013 cereal production mostly stems from a recovery of maize crops in the United States and of wheat crops in CIS countries. Cereal prices could ease, with markets becoming calmer.
Global cereal utilization is forecast to reach 2,418 billion tons in 2013/14, which is 3.5% above 2012/13. Larger supplies and lower prices are expected to boost feed use of cereals by 5.3 percent, to 847.6 million tons.
World meat production is anticipated to grow by 1.4 percent in 2013, to 308.3 million tons. Meat production is anticipated to grow most vigorously in developing countries, which are the main centers of demand expansion, however a decline in meat production is expected in developing countries.
Prices have remained at historically high levels since the beginning of 2011 and, there is no sign of their decreasing overall, despite reduced feed costs.
Both values and volumes entering the international fish markets are showing moderate growth. The market situation overall continues to be difficult, in particular in traditional developed country markets.
Aquaculture continues to boost overall fish supply, pushing quotations down from earlier levels. Fish consumption per capita keeps growing with aquaculture in the process of overtaking capture fisheries as the main source of supply for direct human consumption.