World food prices rise with boost from meat and vegetable oils, says FAO

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Food prices in the world rose sharply in November, driven by large leaps in meat and vegetable oil prices, despite slightly lower cereal prices, the United Nations Food Agency said on Thursday.

The Food and Agriculture Organization (FAO) food price index, which measures monthly changes in a basket of cereals, oilseeds, dairy products, meat and sugar, peaked at 26 months in November.

The indicator averaged 177.2 points, up 2.7% from the previous month and an increase of 9.5% over the same period last year.

The meat price index recorded its biggest monthly increase since May 2009, rising 4.6% from October to 190.5 points, with beef and lamb moving higher, driven by demand from China and higher end consumption. of year.

The vegetable oil price index rose 10.4% to 150.6 points, reaching its highest since May 2018, led by firmer palm oil values, which strengthened with stronger import demand, biodiesel use and concerns about possible shortages.

The cereal price index fell 1.2% to 162.4 points, with large export offers and strong competition among world producers weighing on wheat prices.

Rice prices fell to six-month lows as new harvests increased pressure.

The sugar price index averaged 181.6 points, up 1.8% from October, led by expectations of higher demand.

PRODUCTION

The agency raised its forecast for global cereal production in 2019 by 0.4%, estimating the world cereal crop at 2.714 billion tons, compared to 2018 levels.

Wheat production is expected to increase 4.8% to 766.4 million tonnes.

Global rice production was estimated at 515 million tonnes, an increase of 1.6 million tonnes from the previous forecast, implying a 0.5% drop from the 2018 record, the agency said.




Source: Agricultural News