World food prices hit 10-year peak -FAO
PARIS, Oct 7 (Reuters) – World meals costs rose for a second consecutive month in September to achieve a 10-year peak, pushed by positive aspects for cereals and vegetable oils, the United Nations meals company mentioned on Thursday.
The Rome-based Meals and Agriculture Group (FAO) additionally projected document world cereal manufacturing in 2021, however mentioned this is able to be outpaced by forecast consumption.
FAO’s meals value index, which tracks worldwide costs of essentially the most globally traded meals commodities, averaged 130.0 factors final month, the best studying since September 2011, based on the company’s information.
The determine in contrast with a revised 128.5 for August. The August determine was beforehand given as 127.4.
On a year-on-year foundation, costs had been up 32.8% in September.
Agricultural commodity costs have risen steeply prior to now yr, fuelled by harvest setbacks and Chinese language demand.
The rose by 2.0% in September from the earlier month. That was led by a close to 4% enhance for wheat costs, with the UN company citing tightening export availabilities amid sturdy demand.
“Amongst main cereals, wheat would be the focus within the coming weeks as demand have to be examined in opposition to quick rising costs,” FAO Senior Economist Abdolreza Abbassian mentioned in an announcement.
World vegetable oil costs had been up 1.7% on the month and exhibiting a year-on-year rise of about 60%, as palm oil costs climbed on strong import demand and considerations over labour shortages in Malaysia, FAO mentioned.
Palm oil futures have rallied additional in early October to hit document highs as a surge in crude oil markets has lent additional assist to vegetable oils utilized in biodiesel.
International sugar costs rose 0.5% in September with concern over opposed crop climate in prime exporter Brazil partly offset by slowing import demand and a beneficial manufacturing outlook in India and Thailand, based on FAO.
For cereal manufacturing, FAO projected a document world crop of two.800 billion tonnes in 2021, up barely from 2.788 billion estimated a month in the past.
That may be beneath world cereal use of two.811 billion tonnes, a forecast revised up by 2.7 million tonnes from a month earlier primarily to replicate elevated wheat use inanimal feed, FAO mentioned in a .
International cereal shares had been anticipated to ease in 2021/22 however would nonetheless be at a cushty stage, FAO added.
Reporting by Gus Trompiz
Enhancing by Elaine Hardcastle and Peter Graff
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