FAO Food Price Index rises for the fifth time in a row

Global food prices rose for the fifth straight time in October, fully recovering from the shock caused by the global coronavirus pandemic. They saw growth in most sectors, the United Nations Food Agency said on Thursday.
The food price index, which measures monthly changes for a basket of grains, oilseeds, dairy products, meat and sugar, averaged 100.9 points last month, its highest level since January, up from a slightly revised 97.8 in September. The September number was previously given as 97.9.
The Rome-based FAO also said in a statement that global grain crops remained on track to hit an annual record in 2020, despite slightly lowering their earlier projections.
The agency's grain price index rose by 7.2% in October compared to the previous month and was thus around 16.5% above the value of the previous year.
Wheat export prices were pushed higher amid shrinking supply, while corn hit a six-year high on strong demand from China.Feed barley and sorghum prices also rose, while rice hit a 7-month low.
Average sugar prices rose 7.6% from September and 9.3% year over year. This was mainly due to the prospect of lower sugar production in Brazil and India, the two largest sugar producing countries, due to below-average rainfall.
The milk index rose 2.2% m / m with all segments of the sector increasing, especially cheese.
The vegetable oil price index rose 1.8% month on month, mainly due to firmer prices for pal and soybean oil, while the rapeseed oil component declined due to uncertainty about demand in the European Union.
Bucking the bullish trend seen elsewhere, the meat index recorded a 0.5% month-over-month decline, the ninth monthly decline since January and a 10.7% year-over-year decline, with prices for pork fell again because China banned imports from Germany after African swine fever was found in Europe's largest economy.
The FAO has revised its forecast for the 2020 grain season for the second month in a row, cutting it by almost 13 million tons, due to lower expectations for global coarse grain production.
Despite this decline, the agency expects a record harvest of 2.75 billion tons this year, an increase of 1.6% compared to 2019.
"The outlook for the 2021 winter wheat harvest, which is already being sown in the northern hemisphere, is generally good and reflects expectations of an increase in plantings in response to higher prices in several major producing countries, particularly in the EU," said the FAO.
The forecast for global grain utilization in 2020/21 was estimated at 2.745 billion tons, which corresponds to an increase of 1.9% compared to 2019/20.
The forecast for the global grain stocks at the end of the season 2021 was 876 million tons, a decrease of 13.6 million tons compared to the previous estimate from last month.

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