FAO Food Price Index rises in September
July 2022, Sombat, Cambodia - Heang Raksmey, farmer, posing in a rice field during harvesting time.
Benjamin Orisemeke
The benchmark for world food commodity prices saw its fastest increase in 18 months in September, with quotations up for all covered commodity groups, led by sugar, the Food and Agriculture Organization of the United Nations (FAO) has reported.
The FAO Food Price Index, which tracks monthly changes in the international prices of a set of globally-traded food commodities, averaged 124.4 points in September, up 3.0 percent from August and 2.1 percent higher than its corresponding value a year earlier.
The FAO Sugar Price Index registered the largest increase in September, rising by 10.4 percent. This was driven by worsening crop prospects in Brazil and concerns that India’s decision to lift restrictions on sugarcane use for ethanol production may affect export availabilities from the country.
The FAO Cereal Price Index increased by 3.0 percent during the month, led by higher wheat and maize export prices. International wheat prices increased due largely to concerns over excessively wet conditions in Canada and the European Union, though this was partly offset by competitively priced supplies from the Black Sea region. World maize prices also climbed, influenced by low water levels on key transportation routes along the Madeira River in Brazil and the Mississippi River in the United States of America. By contrast, the FAO All Rice Price Index declined by 0.7 percent, partly reflecting generally quiet trading activities.
The FAO Vegetable Oil Price Index increased by 4.6 percent from August, with higher quotations across the board for palm, soy, sunflower and rapeseed oils. The rise in international palm oil prices was due to lower-than-expected production in major Southeast Asian producing countries, while the rebound in soyoil quotations was primarily due to lower-than-expected crushings in the United States of America.
The FAO Dairy price Index rose by 3.8 percent in September, with quotations up for whole milk powder, skim milk powder, butter and cheese.
The FAO Meat Price Index increased by 0.4 percent, mainly due to higher poultry meat prices driven by strong import demand for Brazil’s product. World bovine and pig meat prices remained stable, while those for ovine meat declined slightly from August levels.
