Globe food value index rise 5% yr-on-year in September – FAO

ROME (Reuters) – Entire world foodstuff charges rose for a fourth thirty day period operating in September, led by robust improves for cereals and vegetable oils, the United Nations food items agency explained on Thursday.

FILE Image: Wheat is witnessed during sunset in a industry of the Solgonskoye farming corporation in the village of Solgon, Russia, in this September 6, 2014 REUTERS/Ilya Naymushin

The Food and Agriculture Organization’s foods cost index, which steps month to month changes for a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 97.9 factors last thirty day period compared to a downwardly revised 95.9 in August.

The August determine was earlier provided as 96.1.

The Rome-based mostly FAO also stated in a assertion that worldwide cereal harvests remained on class to hit an once-a-year record in 2020, even even though it a little trimmed its prior forecasts.

The agency’s cereal rate index rose 5.1% in September from the month just before and 13.6% higher than its price a year earlier.

“Higher wheat value quotations led the maximize, spurred by brisk trade exercise amid concerns above output prospective customers in the southern hemisphere as properly as dry circumstances affecting wintertime wheat sowings all over Europe,” FAO reported.

Maize, sorghum and barley price ranges rose, while rice fell 1.4% as fresh desire slowed.

The vegetable oil value index climbed 6.% month-on-month, thanks largely to rising palm, sunflowerseed and soy oil quotations, achieving an 8-month significant. [POI/]

The dairy index was tiny altered on the month, with average increases in selling price quotations for butter, cheese and skim milk powder offset by a drop in those of total milk powder.

Average sugar rates fell 2.6% from August, reflecting expectations of a world wide production surplus for the new 2020/2021 time. [SOF/L]

The meat index dipped .9% month-on-month and was down 9.4% 12 months-on-calendar year, with quotations for pig meat dropping on the back of China’s shift to ban imports from Germany next the detection of African swine fever in Europe’s greatest financial system.

FAO revised down its forecast for the 2020 cereal year by 2.5 million tonnes, reflecting reduced expectations for the output of international coarse grains.

However, even with this reduction, the company nonetheless anticipated a document harvest this 12 months of 2.762 billion tonnes, up 2.1% on 2019 levels.

The forecast for planet cereal utilisation in 2020/21 was put at 2.744 billion tonnes, down 2.8 million tonnes due to the fact September, but nevertheless 54.5 million tonnes earlier mentioned the 2019/20 estimate. The forecast for entire world cereal shares by the close of seasons in 2021 was 890 million tonnes, down 5.9 million tonnes from the prior estimate but nevertheless representing a file large.

Reporting by Crispian Balmer