(Agence Ecofin) – On global food markets, the months follow one another, but they are not all the same. After several consecutive months of decline, the prices of basic foodstuffs are starting to rise again.
Last October, the food price index calculated by the FAO increased by 2% to 127.4 points from 124.9 points. According to the UN body, this is the highest level since April 2023. With the exception of meat, all the other most traded food products around the world recorded an appreciation in their prices during the month passed.
In detail, the vegetable oil index was the one which posted the largest monthly increase with 7.3%, a level not seen in two years due to the expected drop in palm oil harvests in South Asia. South-East (Indonesia and Malaysia) as well as sunflower and rapeseed.
Dairy products saw their prices rise by 1.9% month on month, supported by vigorous demand for butter and cheese in a context of falling milk supply on the old continent.
For their part, the sugar and cereal indices increased by 2.6% and 0.9% respectively on the one hand due to the prospects of reduced production in Brazil with the drought which penalizes the yields of cane plantations. sugar and on the other hand with the harsh climatic conditions for grasses in Russia, the USA and the EU.
Overall, according to the FAO, world cereal production should fall by 0.4% to 2.85 billion tonnes, which would still mark the second best performance in history. The corn harvest is expected to decline by 1.7% to 1.2 billion tonnes while the supply of rice and wheat will increase to reach 538.9 million tonnes and 791 million tonnes respectively.
Global stocks are expected at 889 million tonnes while overall exports will contract by 3.9% to 485 million tonnes.
Espoir Olodo
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