World Food Price Index Hits Highest in 10 Years... Significant Rise in Grains and Oils

UN Food and Agriculture Organization 'September Global Food Price Index'
Price Index 130P... Highest Since September 2011

Prices of Grains, Oils, Dairy, Sugar, and Meat All Increase

[Sejong=Asia Economy Reporter Moon Chaeseok] The global food price index for September rose for the second consecutive month, reaching its highest level in 10 years.

According to the United Nations Food and Agriculture Organization (FAO) on the 8th, the global food price index for September was 130.0 points (p), up 1.2% from the previous month (128.5p). This is the highest level in 10 years since September 2011 (130.4p).

The food price index showed an upward trend from June last year to May this year, then declined in June for the first time in 13 months, followed by two consecutive months of decline. However, it turned upward again starting in August.

Grains recorded 132.5p, up 2.0% from August. Compared to the same month last year, it rose 27.3%. Wheat prices increased due to high international demand and export volume restrictions. Rice prices also rose due to improved trade activities.

Barley prices increased due to strong demand and downward revisions in Russia's production outlook. On the other hand, corn prices remained stable despite partial disruptions at U.S. port facilities caused by a hurricane, as harvesting began in the U.S. and Ukraine and global crop conditions improved.

Oils and fats rose 1.7% from the previous month to 168.6p, jumping 60% compared to the same month last year. Palm oil prices increased due to high international demand and concerns over reduced production in Malaysia, a major producer, caused by a decrease in migrant workers. Rapeseed oil prices also rose due to prolonged global supply shortages.

Soybean oil prices fell due to uncertain demand in the biodiesel sector, and sunflower oil prices declined as production for 2021?2022 was expected to be sufficient.

Dairy products rose 1.5% from August to 117.9p, up 15.2% compared to the same month last year. Prices of butter, cheese, skimmed milk powder, and whole milk powder increased due to seasonally low inventory and production alongside high demand.

Sugar rose 0.5% from the previous month to 121.2p. Although dry weather and frost in Brazil, the largest exporter, raised concerns about reduced production, international demand slowed, and production outlooks for other major exporters such as India and Thailand were favorable.

Meat prices rose 0.1% from August to 115.5p. Pork prices fell due to decreased demand in China and Europe, and poultry prices declined due to increased supply. Beef prices rose due to low supply of slaughter animals in Oceania and South America, and lamb prices increased amid high demand and limited exportable volumes.

FAO forecasted that global grain production for 2021?2022 would reach a record high of 2.8 billion tons, a 1.1% increase compared to 2020?2021.

However, global grain consumption for 2021?2022 is expected to exceed production at 2.8114 billion tons. Ending stocks of global grains for 2021?2022 are projected at 817.5 million tons, a 0.4% decrease compared to 2020?2021.

This content was produced with the assistance of AI translation services.