FAO’s globe foodstuff rate index rises in February for ninth consecutive month

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FAO’s environment foodstuff price tag index rises in February for ninth consecutive month

05 March 2021

Environment foods costs have been rising for nine months straight, with February’s index hitting the maximum level because July 2014.

Reuters reports that the rise in global food prices was led by jumps in sugar and vegetable oils.

The Foodstuff and Agriculture Organisation’s food cost index, which measures month to month variations for a basket of cereals, oilseeds, dairy merchandise, meat and sugar, averaged 116. details very last month compared to a a little revised 113.2 in January.

The January figure was formerly provided as 113.3.

The Rome-based FAO also stated in a assertion that all over the world cereal harvests remained on program to hit an yearly history in 2020, adding that early indications pointed to a additional raise in production this 12 months.

FAO’s cereal price index climbed 1.2% thirty day period on thirty day period in February. Amid main coarse grains, sorghum rates elevated the most, mounting 17.4% on the month and 82.1% 12 months on calendar year, driven by sturdy desire from China.

Maize and rice charges edged up even though wheat export costs remained mainly steady, FAO mentioned.

Sugar charges climbed 6.4% month on month amid considerations about supplies in 2020/21 mainly because of creation falls in main manufacturing nations around the world and robust demand from customers from Asia.

The vegetable oil price tag index enhanced 6.2% to attain its maximum amount considering the fact that April 2012, with palm oil price ranges soaring for a ninth thirty day period, lifted by anxieties in excess of lower inventories in big exporting nations.

Dairy costs rose 1.7%, whilst the meat index posted a modest .6% acquire. FAO reported pig meat quotations fell, strike by diminished purchases from China amid hefty oversupply and a rise in unsold pigs in Germany owing to a ban on exports to Asian markets.

FAO raised its forecast for the 2020 cereal period to 2.761 billion tonnes from an estimate of 2.744 billion made past thirty day period pointing to a 1.9% enhance yr on calendar year.

That revision mirrored a 7.5 million tonne raise in the earth wheat manufacturing estimate, driven by just lately unveiled formal information from Australia, the European Union, Kazakhstan and Russia.

The forecast for worldwide rice manufacturing was also raised by 2.6 million tonnes from previous month on extra buoyant manufacturing forecasts from India.

FAO raised its forecast for worldwide cereal stocks ending in 2021 by 9 million tonnes to 811 million which would symbolize a .9% decline year on calendar year.

“Hunting in advance, present-day indications counsel a tiny increase in world cereal output in 2021,” FAO claimed.

“Even though most of the wheat crop in the northern hemisphere is nonetheless dormant and southern hemisphere nations are yet to plant, FAO’s preliminarily forecast for world wide wheat output in 2021 points to a 3rd consecutive yearly enhance, to 780 million tonnes, a new history.”

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Resource: Reuters