Global food prices increased in October after declining for last five months, according to the the UN body Food and Agriculture Organisation (FAO). Last month's small rise in prices was largely driven by a surge in sugar prices, although prices of the other commodity groups were also up, it said in a statement.
The FAO price index, which measures monthly price changes for a basket of
cereals, oilseeds, dairy, meat and sugar, averaged at 205.8 points in October
this year, up by 1.3 per cent from the September level, but still 5.3 per cent
lower than its October 2012 value.
"Overall, sugar prices were particularly volatile during the month of October, amid uncertainties on the extent of the anticipated production surplus for the new 2013-14 season," the FAO said.
Sugar prices increased for the third consecutive month to average at 265 points in October due to delayed harvest following unfavourable weather condition in Brazil, world's largest sugar producer and exporter. Also, a fire that destroyed a major sugar warehouse at the Santos port in Brazil exacerbated price surge, it said. The FAO's cereals price index averaged nearly 197 points in October, one per cent up from September but still as much as 22 per cent lower the year-ago period. "This year's anticipated record cereal production and favourable supply outlook weighed on the quotations of most cereals, in particular, maize," the FAO said. However, wheat prices strengthened, supported by firm import demand and deteriorating prospects for production in Argentina and the Back Sea region. Following a marked fall in September, rice prices also moved up slightly, it added. The FAO's oil and fats price index averaged at 188 points in October, up by 2 per cent from September. Palm oil prices strengthened by over 5 per cent, reaching a 13-month high, mainly on lower than anticipated production in Southeast Asia and firm world import demand. Soy oil prices, on the other hand, weakened, stabilising well below the levels recorded in October 2011 and 2012, in line with significantly improved supply prospects for soybeans in the 2013-14 season.
On dairy and meat prices, the Rome-based agency said that dairy prices increased marginally from September level as demand for whole milk powder, especially from China, remains strong and prices of this product have risen. Similarly, butter prices have also risen. However, quotations for skimmed milk powder have weakened and those of cheese remained unchanged. While meat prices remained nearly unchanged from September. Prices for bovine and bovine meat increased, while those of poultry and pig meat moved down.
"Overall, sugar prices were particularly volatile during the month of October, amid uncertainties on the extent of the anticipated production surplus for the new 2013-14 season," the FAO said.
Sugar prices increased for the third consecutive month to average at 265 points in October due to delayed harvest following unfavourable weather condition in Brazil, world's largest sugar producer and exporter. Also, a fire that destroyed a major sugar warehouse at the Santos port in Brazil exacerbated price surge, it said. The FAO's cereals price index averaged nearly 197 points in October, one per cent up from September but still as much as 22 per cent lower the year-ago period. "This year's anticipated record cereal production and favourable supply outlook weighed on the quotations of most cereals, in particular, maize," the FAO said. However, wheat prices strengthened, supported by firm import demand and deteriorating prospects for production in Argentina and the Back Sea region. Following a marked fall in September, rice prices also moved up slightly, it added. The FAO's oil and fats price index averaged at 188 points in October, up by 2 per cent from September. Palm oil prices strengthened by over 5 per cent, reaching a 13-month high, mainly on lower than anticipated production in Southeast Asia and firm world import demand. Soy oil prices, on the other hand, weakened, stabilising well below the levels recorded in October 2011 and 2012, in line with significantly improved supply prospects for soybeans in the 2013-14 season.
On dairy and meat prices, the Rome-based agency said that dairy prices increased marginally from September level as demand for whole milk powder, especially from China, remains strong and prices of this product have risen. Similarly, butter prices have also risen. However, quotations for skimmed milk powder have weakened and those of cheese remained unchanged. While meat prices remained nearly unchanged from September. Prices for bovine and bovine meat increased, while those of poultry and pig meat moved down.
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