World food prices rose for the fourth consecutive month in November, remaining at ten-year highs, led by strong demand for wheat and dairy products, the United Nations food agency reported on Thursday.
The food price index of Food and Agriculture Organization (FAO), which tracks international prices for the most traded food commodities globally, averaged 134.4 points last month, compared with a 132.8 revision for October. The October number was previously 133.2.
The November reading was the highest for the index since June 2011. Year-on-year, the index rose 27.3% last month.
Agricultural commodity prices have risen sharply over the past year, driven by harvest problems and strong demand.
The FAO cereal price index rose 3.1% in November from the previous month and was 23.2% higher than the previous year’s level, with wheat prices reaching their highest level since May 2011.
FAO said wheat prices were supported by concerns about unseasonable rains in Australia and uncertainties about possible changes in export measures in Russia.
The dairy price index registered the biggest monthly increase, 3.4% compared to the previous month. “Strong global import demand persisted for butter and powdered milk as buyers sought to secure supply, anticipating tightening markets,” according to the FAO.
Global sugar prices rose 1.4% in the month and nearly 40% year-on-year. “The increase was mainly driven by higher ethanol prices,” FAO said.
The meat price index registered its fourth consecutive monthly decline, falling 0.9% in the month, while world vegetable oil prices fell 0.3% from October levels, but international palm oil prices remained firm. , according to the Organization.
The Rome-based FAO has lowered its projection of global cereal production in 2021 to 2.791 billion tonnes, down from 2.793 billion estimated a month ago, based on its cereal supply and demand outlook.
However, the expected world cereal production would still represent a record, FAO said.
Reference: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
