5 November 2015

Prices of staple foods rose in October, driven by concerns about bad weather and its impact on the supply of sugar and palm oil, the Food and Agriculture Organization of the United Nations (FAO) reported today.

The FAO Food Price Index registered a rise of 3.9 percent compared to September. Even so, they are still 16 percent below those of the same month last year.

The price of sugar led the overall increase in October, climbing 17.2 percent on fears that excessive rains in Brazil will have an impact on the sugar cane harvest.

Growing concern that the El Niño phenomenon could hamper next year’s palm oil supply in Indonesia prompted a 6.2 percent rise in the vegetable oil price index.

FAO lowered its forecast for global cereal production to 2.53 billion tonnes, 1.1 percent less than last year’s record.

The agency said the reduction is a reflection of lower expectations for corn production in India and Ukraine. Furthermore, the drought in Thailand would also have caused a drop in the projected rice crop this season.

The FAO Food Price Index is a trade-weighted index that tracks the top five groups of staple food products in international markets: grains, meat, dairy products, vegetable oils and sugar. .

5 November 2015

Prices of staple foods rose in October, driven by concerns about bad weather and its impact on the supply of sugar and palm oil, the Food and Agriculture Organization of the United Nations (FAO) reported today.

The FAO Food Price Index registered a rise of 3.9 percent compared to September. Even so, they are still 16 percent below those of the same month last year.

The price of sugar led the overall increase in October, climbing 17.2 percent on fears that excessive rains in Brazil will have an impact on the sugar cane harvest.

Growing concern that the El Niño phenomenon could hamper next year’s palm oil supply in Indonesia prompted a 6.2 percent rise in the vegetable oil price index.

FAO lowered its forecast for global cereal production to 2.53 billion tonnes, 1.1 percent less than last year’s record.

The agency said the reduction is a reflection of lower expectations for corn production in India and Ukraine. Furthermore, the drought in Thailand would also have caused a drop in the projected rice crop this season.

The FAO Food Price Index is a trade-weighted index that tracks the top five groups of staple food products in international markets: grains, meat, dairy products, vegetable oils and sugar. .