World food prices continue to rise, almost year-on-year Food News


The Food and Agriculture Organization’s food price index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 116.5 points last month, compared to a slightly revised 116.1 in February.

World food prices rose for the tenth month in a row in March, the highest level since 2014, the UN Food and Agriculture Organization (FAO) said on Thursday.

The Food and Agriculture Organization’s food price index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 116.5 points last month, compared to a slightly revised 116.1 in February.

The February figure was previously given as 116.0.

The Rome-based FAO also said in a statement that cereal crops around the world are on track to reach an annual record in 2020, with early indications that production will increase further this year.

The FAO’s serial price index fell 1.7 percent in March, ending a eight-month profit, but up 26.5 percent from the same period last month.

Among major food grains, wheat export prices fell the most, to 2.4 percent a month, reflecting good supply and boosting crop production prospects in 2021, the FAO said.

The FAO’s vegetable oil price index reached its highest level since June 2011, driven by higher prices for dates, soy, rape and sunflower oil.

Milk prices have risen for the current decade in the tenth month, registering a 3.9 percent increase. According to the FAO, milk powder is one of the drivers in the sector due to concerns over short-term supply, which led to a huge increase in imports from Asia, especially China.

The meat index rose 2.3 percent, but unlike other indices, it was slightly lower on a year-over-year basis. According to the FAO, Asian countries, mainly China, have increased their imports of poultry and pork at a faster pace.

Sugar prices fell 4 percent month-on-month, but still rose 30 percent year-over-year. According to the FAO, the decline in March was exacerbated by the prospect of large exports from India.

The FAO 2020 serial season forecast ranges from 2.6171 billion tons to 2.76565 billion tons, an increase of 2 percent year on year.

Looking ahead, the FAO said they expected global serial production in 2021 for the third year in a row.

According to the FAO, global wheat production is projected to reach a new high of 7875 million tonnes this year, up 1.4 per cent from the 2020 level, with India expecting a sharp return and a record crop in India.

Above average outputs for corn were also expected, with record crop forecasts for Brazil and many years higher forecasts for South Africa.

In the current 2020-21 marketing season, global cereal consumption is forecast at 2.77777 billion tonnes, up 2.4 percent from last year, driven by higher estimates of wheat and barley feed consumption in China, where the livestock sector is recovering from African swine fever.





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