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Informist, Friday, Oct. 4, 2024

 

MUMBAI – The UN Food and Agriculture Organization's food price index rose 3% on month to 124.4 points in September because of an increase in prices of cereals, vegetable oils, dairy products and sugar. This is the biggest month-on-month increase in the index since March 2022. The food price index in September was 2.1% higher than a year ago but 22.4?low its peak of 160.3 points touched in March 2022, FAO said in a report.

 

The cereal price index averaged 113.5 points in September, up 3% from a month ago but still 10.2?low its September 2023 value. Global wheat prices, which declined for three consecutive months, rose in September mainly because of concerns over unfavourable weather conditions in a few key exporters, the report said. Excessively wet conditions in Canada and the European Union caused delays in harvest in Canada and led to a sizeable cut in the production forecast for the European Union. However, the rise in prices was capped by competitively priced Black Sea supplies, it said.

 

Global maize prices also increased on month due to low water levels on the Madeira River in Brazil and the Mississippi River in the US. Prices were also supported by strong domestic demand in Brazil and a firm export pace in Argentina, the report said. The FAO All Rice Price Index fell by 0.7% in September because of quiet trading activities and lower Indian basmati quotations.

 

The vegetable oil price index rose 4.6% on month to 142.4 points in September, the highest level since early 2023, driven by higher quotations across palm, soy, sunflower, and rapeseed oils, the report said. Global palm oil prices rose for the fourth consecutive month in September due to concerns over lower-than-expected production and seasonal output declines in major Southeast Asian producing countries, it said.

 

Soyoil prices recovered from August because of lower-than-expected crushing in the US. Sunflower and rapeseed oil prices saw marginal recoveries in September due to a tightening supply outlook, the report said.

 

The dairy price index averaged 136.3 points in September, up 3.8% on month and 21.7% on year, the agency said. Among the dairy basket, milk prices rose the most due to strong import demand in Asia. World butter prices rose for the eleventh consecutive month on firm import and domestic demand, tight inventories, and limited milk supplies in Western Europe, it said. World cheese prices rose on strong global import demand and tight exportable availability in Western Europe.

 

The meat price index was at 119.6 points in September, up 0.4% on month and 4.8% on year, it said. Poultry meat prices rose because of strong import demand for Brazilian poultry meat following the relaxing trade restrictions related to the Newcastle disease.

 

The sugar price index averaged 125.7 points in September, up 10.4% on month but down 22.7% from a year ago, the report said. Global sugar prices rose due to worsening crop prospects in Brazil as prolonged dry weather and fires damaged sugarcane fields in late August. Prices were also supported by concerns about India's sugar export availability because of the Indian government's decision to lift restrictions on sugarcane use for ethanol production, it said.  End

 

US$1 = INR 83.97

 

Reported by Ashutosh Pati

Edited by Saji George Titus

 

 

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