FAO said that sugar and cereal prices down, oilseeds and dairy hold steady, meat and fish up

04.06.2010 09:56 "Agro Perspectiva" (Kyiv) — Sugar prices have plummeted by half from their peak at the beginning of the year — they reached a 30-year high average of $583/tonne in January — under prospects of significant production increases. The drop for cereals has been more modest, around 10 percent, but the expectation of another good season ahead could put further downward pressure on prices. Oilseed prices have so far resisted a major downturn, as demand remains strong and supply somewhat tighter than in the case of cereals. However, early indications suggest that oilseed prices may decline in the coming months as supply responds to high prices ease the current tightness. In contrast, prices in the meat sector have risen sharply, mostly due to declines in production while consumption is increasing. The fish sector is benefiting from some revival in demand, but, especially, of limitations on supplies. The market for Atlantic salmon remains particularly tight because of unfavourable supply developments in Chile resulting from disease outbreaks in that country’s aquaculture sector. Poor prospects for milk production in important dairy exporting countries, against a backdrop of brisk import demand, are underpinning firm international dairy prices, the report added.

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