THE FIRST WORLD FOOD PRICE INCREASED IN 5 MONTHS
Food and Agriculture Organization of the United Nations (FAO) on 7/11 said world food prices in October rose for the first time in 5 months. Caused by the sharp increase in sugar and grain prices.
FAO’s food price index measures monthly changes in grain, oilseed, dairy, meat and sugar. On average, the food index stood at 172.7 points in October, an increase of 1.7% compared to September and 6.0% over the same period in 2018.
FAO also forecasts grain production will reach 2.704 billion tons in 2019. This result is slightly lower than the previous forecast.
FAO’s sugar price index increased by 5.8% compared to September. This was mainly due to lower supply forecasts in 2019 following forecasts of a sharp decline in sugar production in India and Thailand.
The price index of cereals increased by 4.2% with export prices of wheat and corn due to the prospect of reduced production in some major producing countries and strong trading activities.
In contrast, the price of rice fell, due to lower demand and an abundant harvest of basmati rice.
The vegetable oil price index increased by 0.5%, reaching the highest level in more than 1 year. While the meat price index increased by 0.9% due to higher import demand. In particular, is from China. In contrast, the dairy price index fell 0.7% in October.
FAO lowered its forecast for global grain production in 2019 to about 2 million tons lower. World cereal production is at 2,704 billion tons. However, it still increased by 1.8% compared to 2018.
Global grain production in 2019 is expected to be 1.425 billion tons, down 1.3 million tons from the previous forecast.
Wheat production is forecast at 765 million tons, down nearly 1 million tons from the previous forecast. However, it is still possible to set a new record and increase by 4.5% compared to 2018.
Meanwhile, global rice production is forecast at 513.4 million tons, down slightly from 2018.