Page 4 - Vol.36-No.8 issue
P. 4


                       EXPECTED TO REACH AN ALL-TIME HIGH

                Global food prices continued rising for the fifth consec-  The FAO Sugar Price Index increased 7.6 percent from
               utive month in October, led by cereals, sugar, dairy and   September ¬- a move largely influenced by the prospects
               vegetable oils, according to a new report from the Food   of a lower sugar output in both Brazil and India - the two
               and Agriculture Organization of the United Nations.   largest sugar producing countries in the world.
                The  FAO  Food  Price  Index,  which  tracks  international   The FAO Meat Price Index, by contrast, declined 0.5 per-
               prices  of  the  most  traded  food  commodities,  averaged   cent from September, marking the ninth monthly decline
               100.9 points in October 2020, up 3.1 percent from Septem-  since January, driven by drop in pig meat prices reflect-
               ber and 6.0 percent above its value in October 2019.  ing in part continued influence of the import restrictions
                The FAO Cereal Price Index climbed 7.2 percent from the   imposed by China on Germany. Bovine and poultry meat
               previous month and 16.5 percent above its value in Octo-  prices also fell, while prices of ovine meat rose on steady
               ber 2019. The surge was mainly driven by wheat prices   internal demand and low export supplies.
               amid  shrinking  export  availabilities,  poor  growing  con-  Despite downward revisions, cereal output still expected
               ditions in Argentina and continued dry weather affecting   to reach an all-time high In its latest Cereal Supply and De-
               winter wheat sowings in Europe, North America and the   mand Brief, also published today, FAO reduced the world’s
               Black Sea region.  Maize, feed barley and sorghum prices   2020 cereal production for a second consecutive month,
               also remained under upward pressure in October, while   by nearly 13 million tonnes, largely on expectations of di-
               those of rice subsided.                           minished world coarse grains production. However, glob-
                The FAO Vegetable Oil Price Index gained 1.8 percent   al cereal output is still forecast at a record 2 750 million
               during the month, posting a nine-month high, led by firmer   tonnes, surpassing the 2019 output by 1.6 percent.
               palm and soy oil prices. By contrast, rapeseed oil prices   The reduction in the world coarse grains production fore-
               declined moderately amid increased uncertainty regard-  cast reflects lower expectations for the maize output in the
               ing  demand  in  the  European  Union  (EU)  following  the   EU and Ukraine, where continued adverse weather has fur-
               recent deterioration of the COVID-19 situation across the   ther reduced yield prospects.
               region.                                            The  global  wheat  production  forecast  for  2020  is  also
                The FAO Dairy Price Index rose 2.2 percent from Sep-  trimmed slightly this month, on lower output expectations
               tember, with cheese rising the most, followed by skim milk   in Ukraine and Argentina due to the impact of dry weather.
               powder, whole milk powder and butter. Price increases in   Prospects for the 2021 winter wheat crop, which is already
               October reflected market tightening for near-term deliv-  being  sown  in  the  northern  hemisphere,  are  generally
               eries, underpinned by robust import demand from Asian   strong, reflecting the expectations of increased plantings
               and Middle Eastern markets.                       in  response  to  higher  prices  in  several  main  producing
                                                                 countries, notably in the EU.

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