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Global food prices record biggest annual decline since 2015
Global food prices suffered their biggest annual decline since 2015, with signs that falling wholesale food prices are beginning to trickle down to supermarket shelves.
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The food price index compiled by the Food and Agriculture Organization of the United Nations fell by about 10% in 2023, according to data released on Friday.
Although the index tracks the cost of raw materials rather than retail prices, the sharp drop comes as food prices have fallen from their peak in 2022 following Russia’s invasion of Ukraine and contributing to Ukraine’s cost of living crisis. may represent a potential remedy for consumers. countries around the world.
Corn and wheat futures prices suffered their biggest annual decline in a decade last year as supply concerns receded. Futures prices for pigs and palm oil also recorded significant declines.
The UN index is currently at its lowest level since February 2021, but lower wholesale costs are taking time to trickle down to supermarkets and consumers. However, there are signs that food inflation is subsiding. In the UK, the index plummeted last month to its lowest level since June 2022, while New Zealand also saw food, fuel and alcohol price increases slow. In Pakistan, increased production is likely to limit food price increases.
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The FAO grain index fell more than 16% compared to the same period last year, despite a slight rise last month due to weather-related shipment disruptions for major exporters. The group said price indexes for sugar, vegetable oil and meat fell in December, “more than offset the rise in dairy products and cereals.”
The food price index in December fell by 1.5% from the previous month.
Aine Quinn, Bloomberg
7:30am
Stock market before the opening bell
U.S. Treasuries widened their decline, heading for their biggest weekly decline since October on speculation that a resilient labor market could delay the Federal Reserve’s interest rate cuts. . Stocks fell and the dollar rose for the sixth day in a row.
Traders are awaiting U.S. non-farm jobs data, which is expected to show employers added 175,000 positions last month. While this is a slower hiring pace than in November, it still reflects the strength of the economy and could be evidence that the bet on easy monetary policy has gone too far.
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Swaps traders now believe there is about a 65% chance the Fed will cut rates before its March meeting, down from a week ago when they were almost fully pricing in a rate cut.
As a result, investors are pulling back on some of last year’s most popular trades. Futures for the tech-heavy Nasdaq 100 index fell 0.4% on Friday, and the index has fallen more than 3% so far this week. The yield on the 10-year Treasury note has once again exceeded 4%.
The S&P/TSX Composite Index rose 52.77 points to end at 20,871.35 on Thursday.
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Both Canada and the United States released employment figures for December this morning. Also live are U.S. Factory Orders, ISM Services PMI, and Global Supply Chain Pressure Index.
Constellation Brands Inc. reports earnings today.
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Additional reporting from The Canadian Press, Associated Press and Bloomberg
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