Global food prices at six-year high level: FAO

February 8, 2021

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According to a report by the United Nations Food and Agriculture Organization (FAO), world food prices in January-2021 rose for the eighth month in a row, primarily for grains, vegetable oils and sugar.

FAO said its food price index rose 4.3 percent from December, reaching its highest level in Six and a Half Years. The index tracks monthly changes in world prices for widely traded food products.

The Grain Price Index saw a sharp monthly rise of 7.1% driven by a global rise in the price of corn, which North Americans call corn.

Corn prices rose 11.2 percent and are now 42.3 percent above January 2020 levels, “reflecting a decline in global supplies on the back of large purchases by China and lower-than-expected estimates of production and stocks in the United States of America. in addition to the temporary suspension of operations. Registration of corn exports to Argentina. “

The report also said wheat price rose 6.8 percent, driven by strong global demand and expectations of declining sales in Russia when wheat export duties doubled in March 2021. Strong demand for rice from Asian and African buyers has supported the strong rise in rice prices. …

Vegetable oil was sold in January 5.8 percent more than in December, the highest price since May 2012. Factors affecting palm oil production in Indonesia and Malaysia are less than expected “due to heavy rains, persistent labor shortages from migrant workers, and prolonged strikes in Argentina. Reduces the export availability of soybean oil. “

The sugar price index rose 8.1% from December, as strong global import demand raised concerns about reduced supply due to deteriorating crop prospects in the European Union, Russia and Thailand, and drier-than-usual weather conditions. conditions in South America.

FAO said the dairy price index also jumped 1.6 percent, boosted by increased purchases in China ahead of the country’s New Year holidays, amid a seasonal decline in exports to New Zealand.