Global food prices hit 10-year high -FAO

PARIS, Oct. 7 (Reuters) – Global food prices rose for the second consecutive month in September to reach a 10-year high, driven by gains in grains and vegetable oils, the United Nations agency said on Thursday. food.

The Rome-based Food and Agriculture Organization (FAO) also forecast record world cereal production in 2021, but said that would be exceeded by expected consumption.

The FAO Food Price Index, which tracks the international prices of the world’s most traded food products, averaged 130.0 points last month, the highest figure since September 2011, according to data from the agency.

The figure was compared to a revised 128.5 for August. The August figure was previously 127.4.

On a year-over-year basis, prices rose 32.8% in September.

Agricultural commodity prices have risen sharply over the past year, fueled by crop declines and Chinese demand.

The FAO cereal price index rose 2.0% in September from the previous month. This was led by a nearly 4% increase in wheat prices, with the UN agency citing tight export supplies amid high demand.

“Among the major grains, wheat will be the focus in the coming weeks as demand must be tested against rapidly rising prices,” FAO Senior Economist Abdolreza Abbassian said in a statement. communicated.

Global vegetable oil prices rose 1.7% on the month and are up about 60% year-over-year, as palm oil prices soared as a result strong import demand and concerns about labor shortages in Malaysia, FAO said.

Palm oil futures strengthened further in early October to record highs as booming crude oil markets further supported vegetable oils used in biodiesel.

World sugar prices rose 0.5% in September, as concerns over bad weather conditions in Brazil, the main exporter, were partly offset by slowing import demand and favorable production prospects in India and China. Thailand, according to the FAO.

For cereal production, FAO has forecast a record world harvest of 2.8 trillion tonnes in 2021, up slightly from the 2.78 trillion estimated a month ago.

This would be lower than the global cereal use of 2.811 billion tonnes, a forecast revised upward by 2.7 million tonnes from the previous month, mainly to reflect the increased use of wheat in animal feed, FAO said in a note on grain supply and demand.

Global cereal stocks are expected to decline in 2021/22 but remain at a comfortable level, the FAO added.

Reporting by Gus Trompiz Editing by Elaine Hardcastle and Peter Graff

Our Standards: Thomson Reuters Trust Principles.

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