عربي English Türkçe اردو فارسى
Logo
Latest News
Business

FAO: World Food Prices Hold Steady in November

Women buy food from a roadside stall in Colombo, Sri Lanka, Friday, Dec. 8, 2023. (AP Photo/Eranga Jayawardena)
Women buy food from a roadside stall in Colombo, Sri Lanka, Friday, Dec. 8, 2023. (AP Photo/Eranga Jayawardena)
TT
TT

FAO: World Food Prices Hold Steady in November

Women buy food from a roadside stall in Colombo, Sri Lanka, Friday, Dec. 8, 2023. (AP Photo/Eranga Jayawardena)
Women buy food from a roadside stall in Colombo, Sri Lanka, Friday, Dec. 8, 2023. (AP Photo/Eranga Jayawardena)

The United Nations food agency's world price index held steady in November, with lower international cereal prices offset by higher prices of vegetable oils.
The Food and Agriculture Organization's (FAO) price index, which tracks the most globally traded food commodities, averaged 120.4 points in November, around October's levels which were the lowest since March 2021.
The November reading marked a 10.7% decline versus last November.
The FAO cereal price index decreased by 3.0% month-on-month in November, lead by a sharp fall in maize prices, while those of wheat declined by 2.4%, Reuters reported.
Vegetable oil prices, however, rose 3.4% from October.
"Palm oil prices rebounded more than 6% in November, chiefly underpinned by more active purchases by leading importing countries and seasonally lower outputs in major producing countries," the FAO said in a statement.
The agency's dairy price index rose 2.2% from October, led by high demand for butter and skimmed milk powder in Northeast Asia, and increased pre-holiday demand in Western Europe.
Sugar prices rose 1.4% month-on-month in November but averaged 41.1% higher than last November thanks to worsening production prospects in Thailand and India.
In a separate report on cereal supply and demand, the FAO raised its forecast for world cereal production this year to a record 2.823 billion metric tons versus 2.819 billion previously - representing a 0.9% increase from 2022.
"Looking ahead to next season, planting of the 2024 winter wheat crop is ongoing in the northern hemisphere and, reflecting lower crop prices, area growth could be limited," said the FAO.
Nevertheless, the agency sees world cereal stocks up 2.7% by the end of the 2024 season, while the cereal stock-to-use ratio is forecast at 30.8% in 2023/24, "indicating an overall comfortable supply level".

Most Viewed

 
 
Business

Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
TT
TT

Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)

Telecommunications companies listed on the Saudi Stock Exchange (Tadawul) achieved a 12.46 percent growth in their net profits, which reached SAR 4.07 billion ($1.09 billion) during the second quarter of 2024, compared to SAR 3.62 billion ($965 million) during the same period last year.

They also recorded a 4.76 percent growth in revenues during the same quarter, after achieving sales worth more than SAR 26.18 billion ($7 billion), compared to SAR 24.99 billion ($6.66 billion) in the same quarter of 2023.

The growth in the revenues and net profitability is the result of several factors, including the increase in sales volume and revenues, especially in the business sector and fifth generation services, as well as the decrease in operating expenses and the focus on improving operational efficiency, controlling costs, and moving towards investment in infrastructure.

The sector comprises four companies, three of which conclude their fiscal year in December: Saudi Telecom Company (STC), Mobily, and Zain Saudi Arabia. The fiscal year of Etihad Atheeb Telecommunications Company (GO) ends on March 31.

According to its financial results announced on Tadawul, Etihad Etisalat Company (Mobily) achieved a 33 percent growth rate of profits, bringing its profits to SAR 661 million by the end of the second quarter of 2024, compared to SAR 497 million during the same period in 2023. The company also achieved a 4.59 percent growth in revenues to reach SAR 4.47 billion, compared to SAR 4.27 billion in the same quarter of last year.

The Saudi Telecom Company achieved the highest net profits among the sector’s companies, at about SAR 3.304 billion in the second quarter of 2024, compared to SAR 3.008 billion in the same quarter of 2023. The company registered a growth of 4.52 percent in revenues.

On the other hand, the revenues of the Saudi Mobile Telecommunications Company (Zain Saudi Arabia) increased by about 6.69 percent, as it recorded SAR 2.55 billion during the second quarter of 2024, compared to SAR 2.39 billion in the same period last year.

Commenting on the quarterly results of the sector’s companies, and the varying net profits, the head of asset management at Rassanah Capital, Thamer Al-Saeed, told Asharq Al-Awsat that the Saudi Telecom Company remains the sector leader in terms of customer base expansion.

He also noted the continued efforts of Mobily and Zain to offer many diverse products and other services.

Financial advisor at the Arab Trader Mohammed Al-Maymouni said the financial results of telecom sector companies have maintained a steady growth, up to 12 percent, adding that Mobily witnessed strong progress compared to the rest of the companies, despite the great competition which affected its revenues.

He added that Zain was moving at a good pace and its revenues have improved during the second quarter of 2024. However, its profits were affected by an increase in the financing cost by SAR 26.5 million riyals and a rise in interest, while net income declined significantly compared to the previous year, during which the company made exceptional returns.