World food prices rose for the fourth straight month in November and remained at their 10-year high, led by strong demand for wheat and dairy products, the UN Food Authority said this morning.
The Food and Agriculture Organization (FAO) food price index, which tracks the international prices of the world's most heavily traded foods, averaged 134.4 points last month, compared to a revised 132.8 points in October.
The November value was the highest for the index since June 2011. On an annual basis, the index rose 27.3% last month.
The prices for agricultural commodities rose sharply in the past year, driven by crop setbacks and strong demand.
The FAO's grain price index rose by 3.1% in November compared to the previous month and was 23.2% above the previous year's value, with wheat prices reaching their highest level since May 2011.
The FAO said wheat prices were propped up by concerns about unusual rainfall in Australia and uncertainty about possible changes in export measures in Russia.
The milk price index recorded the strongest monthly increase with a plus of 3.4% compared to the previous month. "Strong global import demand for butter and milk powder continued as buyers sought to secure supplies locally to meet emerging markets," the FAO said.
Global sugar prices rose 1.4% for the month and nearly 40% year over year. "The increase was mainly driven by higher ethanol prices," said the FAO.
The meat price index saw its fourth straight monthly decline, down 0.9% for the month, while global vegetable oil prices fell 0.3% from October, but international palm oil prices remained firm, the FAO said.
The Rome-based FAO has lowered its forecast of global grain production in 2021 from 2.793 billion tons a month ago to 2.791 billion tons, in line with its forecast of grain supply and demand.
However, expected global grain production would still set a record, the FAO said.
"The month-to-month downgrade is primarily the result of an expected marginally lower global coarse grain yield reflecting reduced projections for barley and sorghum production," the FAO said.
Global grain consumption is expected to rise 1.7% above the 2020/21 level in 2021/22 and reach 2.810 billion t. The FAO forecast for global grain stocks by the end of the season in 2022 was 822 million tons, 2.9 million tons more since November, but still 0.7% less than at the beginning.
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Hansa Terminhandel GmbH