AA / Paris / Ümit Dönmez
The FAO Food Price Index increased by 3% in September, reaching 124.4 points. In a press release, the Food and Agriculture Organization of the United Nations (FAO) declared that “this increase, the strongest in 18 months, is mainly explained by a 10.4% increase in prices sugar, due to poor harvests in Brazil and restrictions in India.
Prices of cereals, vegetable oils and dairy products have also increased. The cereal price index rose 3%, driven by corn and wheat, whose prices were affected by unfavorable weather conditions in Canada and Europe. Rice prices, on the other hand, fell slightly (-0.7%), with the market remaining relatively stable.
Sugar remains the most affected product with a marked increase, due to “deteriorating harvest prospects in Brazil” and uncertainty in India. The latter could redirect its cane production towards ethanol, thus reducing the supply of sugar for export, according to the FAO.
Vegetable oils saw prices rise 4.6% due to lower production in Southeast Asia, while soybean oil was affected by lower-than-expected U.S. milling volumes. Dairy products also rose 3.8%, and meat 0.4%, partly due to strong demand for poultry from Brazil.
The FAO has also revised its forecast for global cereal production for 2024-2025, estimating that it will reach 2,853 million tonnes. “Rice production could reach a record 539.2 million tonnes,” the report said, although international grain trade is expected to decline 2.7% from the previous year.
According to FAO forecasts, global cereal stocks will increase by 1.2%, ensuring a “comfortable supply for the next season”.
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