PARIS, Oct 7 (Businesshala) – World food prices rose for the second straight month in September to a 10-year peak, driven by gains from cereals and vegetable oils, the UN food agency said on Thursday.
The Rome-based Food and Agriculture Organization (FAO) also forecast record global grain production in 2021, but said it would overtake forecast consumption.
The FAO’s Food Price Index, which tracks international prices of the most traded food commodities globally, averaged 130.0 points last month, the highest since September 2011, according to agency data.
This figure compared with the revised 128.5 for August. The August figure was earlier given 127.4.
Prices were up 32.8% in September on a year-on-year basis.
Agricultural commodity prices have risen sharply over the past year, driven by crop shocks and sugar demand.
NS FAO’s Grain Price Index September saw an increase of 2.0% compared to the previous month. This was led by a nearly 4% increase in wheat prices, the UN agency cited strengthening export availability amid strong demand.
“The focus will be on wheat among the major cereals in the coming weeks as demand needs to be tested against rapidly rising prices,” FAO senior economist Abdolreza Abbasian said in a statement.
World vegetable oil prices rose 1.7% on the month and nearly 60% year-on-year, the FAO said, as palm oil prices climbed on concerns over strong import demand and labor shortages in Malaysia.
A surge in crude oil markets has further supported vegetable oils used in biodiesel, pushing palm oil futures to record highs in early October.
According to the FAO, global sugar prices rose 0.5% in September on concerns over an unfavorable crop season in Brazil, the top exporter in Brazil, partially offset by sluggish import demand and favorable production outlook in India and Thailand.
For grain production, the FAO forecast a record world harvest of 2.800 billion tonnes in 2021, up slightly from the 2.788 billion estimated a month earlier.
The FAO said in a statement that this would fall short of world grain use of 2.811 billion tonnes, a revised forecast from 2.7 million tonnes a month ago mainly reflecting an increase in wheat use in livestock feed. grain supply and demand note.
The FAO said global grain stocks were expected to decline in 2021/22, but would still remain at a comfortable level.