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World food prices hit 10-year peak UN food agency

Asad Iqbal by Asad Iqbal
October 7, 2021
2 min read
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World food prices hit 10-year peak UN food agency

In this file photo, a woman wearing a protective mask shops for vegetables at a traditional market in Jakarta, Indonesia. — DhartiNewsTV/File

Globe food prices increased momentarily successive month in September to get to a 10-year peak, driven by gains for grains and also veggie oils, the United Nations food agency claimed on Thursday.

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The Rome-based Food as well as Agriculture Organisation (FAO) additionally predicted record global grain production in 2021, however said this would certainly be outpaced by forecast intake.

The FAO’s food consumer price index, which tracks worldwide rates of one of the most globally traded food products, averaged 130 factors last month, the greatest reading since September 2011, according to the agency’s data.

The figure compared with a modified 128.5 for August. The August number was previously given as 127.4.

On a year-on-year basis, costs were up 32.8 percent in September.

Agricultural asset prices have climbed considerably in the past year, sustained by harvest obstacles as well as Chinese need.

The FAO’s cereal consumer price index rose by two percent in September from the previous month. That was led by a close to four percent rise for wheat costs, with the UN agency mentioning tightening export accessibilities amidst solid need.

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“Among major cereals, wheat will be the emphasis in the coming weeks as demand requires to be tested versus fast-rising rates,” FAO Senior Economist Abdolreza Abbassian stated in a statement.

World vegetable oil rates were up 1.7 pc in the month, showing a year-on-year rise of about 60pc, as palm oil rates got on durable import need and also worries over labour lacks in Malaysia, the FAO said.

Palm oil futures have actually rallied even more in early October to strike record highs as a surge in crude oil markets has actually provided more support to veggie oils used in biodiesel.

Global sugar prices rose 0.5 computer in September with worry over damaging plant weather in leading merchant Brazil partially offset by reducing import demand as well as a favourable manufacturing outlook in India and also Thailand, according to the FAO.

For grain production, the FAO forecasted a record globe plant of 2.8 billion tonnes in 2021, up slightly from 2.78 bn estimated a month earlier.

That would certainly be listed below globe cereal use of 2.81 bn tonnes, a forecast modified up by 2.7 million tonnes from a month earlier primarily to mirror boosted wheat use in animal feed, the FAO claimed in a grain supply and demand note.

International grain supplies were expected to reduce in 2021/22 yet would still be at a comfy degree, the FAO included.

Tags: 10-year peak UN food agencyWorld food prices hit 10-year
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Asad Iqbal

Asad Iqbal

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