LOWER WHEAT PRODUCTION In a separate report on cereals supply and demand, the FAO issued a first preliminary forecast for global wheat production in 2023, with a year-on-year decline to 784 million tonnes seen although the crop would still be the second highest on record. "In Ukraine, severe financial constraints, infrastructure damage and obstructed access to fields in parts of the country have resulted in an estimated 40% year-on-year reduction in the 2023 winter wheat area, and a well below-average wheat output is anticipated in 2023," the FAO said. The decline was partially offset by an expected rise in U.S. production to 51 million tonnes, with high prices leading to an increase in wheat sowings to the highest level since 2015. The FAO raised its forecast for world cereal production in 2022 by 9 million tonnes to 2.77 billion tonnes, although that would still be 1.3% lower year-on-year. The report said the bulk of the upward revision related to rice, with an improved outlook for production in India. (Reporting by Nigel Hunt; Editing by John Stonestreet and Jan Harvey)
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LONDON, March 3 (Reuters) - The United Nations food
agency's world price index fell in February for an 11th
consecutive month, and is now down 19% from a record high hit
last March following Russia's invasion of Ukraine.
The Food and Agriculture Organization's (FAO) price index,
which tracks the most globally traded food commodities, averaged
129.8 points last month against 130.6 for January, the agency
said on Friday. It was the lowest reading since September 2021.
The monthly update said the decline in the index reflected
lower prices for vegetable oils and dairy products, which more
than offset a steep rise in sugar prices.
The FAO cereal price index fell by a marginal 0.1%
month-on-month in February, with a marginal rise in wheat prices
more than offset by lower rice prices.
Vegetable oils fell by 3.2% and dairy by 2.7%, while sugar
rose by 6.9% to a six-year high due largely to a downward
revision to production in India.
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