World meals costs rose for a fourth straight month in November to stay at 10-year highs, led by sturdy demand for wheat and dairy merchandise, the U.N. meals company mentioned on Thursday.
The Meals and Agriculture Group’s (FAO) meals value index, which tracks worldwide costs of probably the most globally traded meals commodities, averaged 134.4 factors final month in contrast with a revised 132.8 for October.
The October determine was beforehand given as 133.2.
The November studying was the best for the index since June 2011. On a year-on-year foundation, the index was up 27.3 per cent final month.
Learn extra:
Meals costs rose practically 4% in September. These merchandise noticed the largest soar
Agricultural commodity costs have risen steeply prior to now 12 months, pushed by harvest setbacks and robust demand.
The FAO’s cereal value index rose by 3.1 per cent in November from the earlier month and was 23.2 per cent increased than its year-ago stage, with wheat costs hitting their highest stage since Could 2011.
FAO mentioned wheat costs have been supported by issues about unseasonable rains in Australia and uncertainty over potential adjustments to export measures in Russia.
The dairy value index posted the most important month-to-month rise, up 3.4 per cent from the earlier month. “Sturdy international import demand continued for butter and milk powders as consumers sought to safe spot provides in anticipating of tightening markets,” FAO mentioned.
International sugar costs rose 1.4 per cent on the month and was up practically 40 per cent year-on-year. “The rise was primarily pushed by increased ethanol costs,” FAO mentioned.
The meat value index posted its fourth consecutive month-to-month decline, shedding 0.9 per cent on the month, whereas world vegetable oil costs fell 0.3 per cent on October ranges, however worldwide palm oil costs remained agency, FAO mentioned.
Rome-based FAO lower its projection of worldwide cereal manufacturing in 2021 to 2.791 billion tonnes from 2.793 billion estimated a month in the past, based on its cereal provide and demand outlook.
Learn extra:
‘The place does this all finish?’: Excessive gasoline and meals prices right here for some time, consultants warn
Nonetheless, the anticipated world cereal output would nonetheless symbolize a file, FAO mentioned.
“The month-to-month downgrade is primarily the results of an anticipated marginally smaller international coarse grains outturn, reflecting diminished forecasts for barley and sorghum manufacturing,” FAO mentioned.
World cereal utilization in 2021/22 was forecast to rise by 1.7 per cent above the 2020/21 stage, hitting 2.810 billion tonnes. FAO’s forecast for world cereal shares by the shut of seasons in 2022 stood at 822 million tonnes, up 2.9 million tonnes since November however nonetheless down 0.7 per cent from opening ranges.
(Reporting by Crispian Balmer)
