FAO food index rose for the first time in 5 months
Global food prices for the first time in 5 months, grew in October thanks to the rise in prices of sugar and cereals, — reported in the Food and agricultural organization (FAO).
In October, the FAO food index, taking into account monthly change in the price of grains and oilseeds, sugar, meat and dairy products, increased compared to the previous month by 1.7% to 172,7 p, which is 6% higher than the October 2018
According to FAO estimates, cereal production in 2019 will be 2,704 billion tonnes, 2 million tonnes inferior forecast of September, but 1.8% higher than the figure recorded in 2018, the price Index for cereals rose by 4.2%, as wheat and corn has risen due to the possible reduction of yield in some producing countries and high demand. Compared to the previous forecast estimate of world production of coarse grains in 2019 was reduced by 1.3 million tonnes to 1.425 billion tonnes and wheat production by 1 million tonnes, which is 4.5% over 2018, However, the price of rice declined over the expected bountiful harvest of basmati and low demand. In 2019, the rice harvest will be 513,4 million tonnes, which almost corresponds to the previous forecast and last year.
In comparison with September the price index for sugar increased by 5.8% due to the forecast reduction in production in India and Thailand.
the price Index for vegetable oil rose 0.5% to its highest in over a year level, while the meat price index due to active import, especially from China, rose 0.9%. At the same time, the price index for dairy products dropped by 0.7% as the fall in the price of the cheese was covered with rise in price of skimmed milk powder and whole milk.