Food prices have experienced their highest monthly rise for four years in June, after sugar prices and prices of other raw materials for human consumption had risen. This reports the FAO today.
In January, food prices to a seven-year low had reached, so agricultural Agency (FAO) found the experts of the United Nations of foo. Stable prices is expected over the next decade.
With a price increase of 4.2% compared to the corn numbers, the index had grown five times in June in a row. It will be evaluated every month a basket of grain, oilseeds -, dairy, meat and sugar prices. Currently, the index is only 1% in June of last year.
For the next ten years, the Organization now expects stable prices. Most recently however has been observed a high price volatility with price spikes and supply shortages. Sugar prices rise in June to 14.8%, because heavy rains in Brazil, the largest sugar producers in the world, yields there negatively affected. Producers in Brazil offer more cane sugar for human consumption, which comes at the expense of ethanol production.
The prices of vegetable oils defied the price rise and eased compared with the may figures by 0.8%, because less was imported from Indonesia and Malaysia because of high prices.
The FAO raised its estimate for global cereal production in 2016/17 to 2,544 billion tons to 15.3 million tons compared to the previous year but still below the harvest volume in 2014. The higher estimate results from the expectation of higher wheat crops, which are estimated with 732 million tonnes, because there are good vegetation conditions in Europe, Russia and the United States.
The consumption of wheat will increase also according to the FAO, as in the EU, Indonesia, and the United States probably more of the grain is fed. But also the industrial use of wheat is expected to rise. In 2017, the closing stock of wheat is therefore estimated 1.5% below the initial inventory.
