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FAO Food Price Index rises sharply
04.12.2020 13:50 "Agro Perspectiva" (Kyiv) —
Global food commodity prices rose sharply in November to their highest level in nearly six years, according to a benchmark United Nations report released. The FAO Food Price Index averaged 105.0 points during the month, up 3.9 percent from October and 6.5 percent higher than its value a year earlier. The monthly increase was the sharpest since July 2012, putting the index at its highest level since December 2014, the Food and Agriculture Organization said. The FAO Food Price Index tracks changes in the international prices of the most globally traded food commodities. All of its sub-indices rose in November. The FAO Vegetable Oil Price Index gained a stunning 14.5 percent in the month, led by an ongoing rally in palm oil prices linked to sharp contractions in world inventory levels. The FAO Cereal Price Index rose 2.5 percent from October and averaged 19.9 percent higher than in November 2019. Wheat export prices rose, linked to reduced harvest prospects in Argentina, as did maize prices on account of lower output expectations in the United States of America and Ukraine as well as large purchases by China. International rice prices held steady during the month. The FAO Sugar Price Index rose 3.3 percent month-on-month amid growing expectations of a global production shortfall in the upcoming marketing season as unfavorable weather conditions drove weaker crop prospects in the European Union, the Russian Federation and Thailand. The FAO Dairy Price Index increased 0.9 percent to near an 18-month high, driven largely by firmer butter and cheese prices and surging retail sales in Europe during a seasonal low period for milk production in the region. The FAO Meat Price Index rose 0.9 percent from October, but it is still 13.7 percent below its value a year ago. Prices of bovine, ovine and pig meats all increased, while those of poultry meat declined.
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