Global food prices peak in 10 years: FAO

Paris — The United Nations Food Agency said Thursday that global food prices peaked for 10 years, rising for the second straight month in September, driven by rising grain and vegetable oil prices.

The Food and Agriculture Organization (FAO), based in Rome, also predicted record global grain production in 2021, but said it exceeded projected consumption.

According to FAO data, FAO’s Food Price Index, which tracks the international prices of the world’s most traded foods, averaged 130.0 points last month, the highest since September 2011.

Numerical value compared with the August revision 128.5. The August number was previously given as 127.4.

Year-on-year prices rose 32.8% in September.

Agricultural prices have skyrocketed over the past year, boosted by a recession in harvests and demand in China.

FAO cereal Price index The rate of increase in September was 2.0% month-on-month. This is due to a nearly 4% rise in wheat prices, and UN agencies say they are tightening export availability amid strong demand.

In a statement, FAO senior economist Abdul Reza Abashian said, “Wheat will be the focus of attention in the coming weeks as it needs to be tested against soaring prices among major grains. “.

Global vegetable oil prices rose 1.7% monthly, up about 60% year-on-year, as palm oil prices rose due to strong import demand and concerns over Malaysia’s labor shortage, according to FAO.

Palm oil futures rose further in early October to a record high as the surge in the crude oil market provided further support for the vegetable oils used in biodiesel.

According to FAO, global sugar prices rose 0.5% in September. This is because concerns about the weather of unfavorable crops in Brazil, a major exporter, were partially offset by slowing import demand and good production prospects in India and Thailand.

In terms of grain production, FAO forecasts a record global crop of 280 billion tonnes in 2021, a slight increase from the estimated 2,788 million tonnes a month ago.

This is below the world’s grain usage of 2,811 million tonnes. Forecasts increased 2.7 million tonnes from the previous month, mainly reflecting increased wheat usage in FAO, an animal feed. Said In the grain supply and demand note.

FAO added that global grain inventories were expected to ease in 2021/22, but are still at comfortable levels.