ROME, Feb 4 (Reuters) – Environment meals price ranges rose for an eighth consecutive month in January, hitting their greatest degree since July 2014, led by jumps in cereals, sugar and vegetable oils, the United Nations food items agency mentioned on Thursday.
The Food stuff and Agriculture Organization’s meals value index, which actions every month improvements for a basket of cereals, oilseeds, dairy merchandise, meat and sugar, averaged 113.3 points last thirty day period compared to an upwardly revised 108.6 in December.
The December figure was earlier specified as 107.5.
The Rome-primarily based FAO also reported in a statement that throughout the world cereal harvests remained on study course to strike an once-a-year document in 2020, but warned of a sharp drop in shares and signalled unexpectedly substantial import calls for from China.
FAO’s cereal price tag index climbed 7.1% month-on-month in January, led larger by global maize selling prices, which soared 11.2%, some 42.3% earlier mentioned their stage a yr back, buoyed in part by purchases by China and lower-than-expected U.S. generation.
Wheat selling prices enhanced 6.8%, pushed by strong worldwide desire and expectations of lowered revenue by Russia when its wheat export duty doubles in March 2021, FAO mentioned.
Sugar rates jumped 8.1%, with anxieties about worsening crop prospective buyers in the European Union, Russia and Thailand, and dry temperature situations in South The us, pushing up import demand from customers.
The vegetable oil rate index enhanced 5.8% to attain its best degree given that May well 2012, pushed up in portion by decrease-than-anticipated palm oil output in Indonesia and Malaysia owing in part to weighty rainfall. A increase in soyoil price ranges was fuelled by decreased export alternatives and extended strikes in Argentina.
Dairy costs rose 1.6%, underpinned by heavy Chinese buys forward of the impending New 12 months holiday.
The meat index posted a 1.% gain, led by brisk imports of poultry, particularly from Brazil, amid avian influenza outbreaks that have hampered exports from a number of European nations.
FAO revised up its forecast for the 2020 cereal season to 2.744 billion tonnes from a preceding estimate of 2.742 billion tonnes made in December, with both wheat and rice yields viewed rising. The forecast for coarse grains production was trimmed because of decreased prospects for the United States and Ukraine.
“Looking ahead to 2021 cereal output, early production prospects for winter season wheat crops in the northern hemisphere indicate a modest maximize this calendar year,” FAO explained.
The U.N. company claimed China was importing unexpectedly massive quantities of maize this period, which was obtaining a sizeable knock-on effects on estimates for globe utilisation and stocks.
The forecast for environment cereal utilisation in 2020/21 was place at 2.761 billion tonnes against a former estimate of 2.744 billion, though the forecast for world cereal stocks was pegged at 802 million tonnes down from a preceding 866.4 million tonnes.
“At this level, the environment shares-to-use ratio of cereals would drop from 29.7 % in 2019/20 to 28.3 p.c in 2020/21, marking a seven-calendar year reduced,” FAO mentioned.
It explained the contraction stemmed largely from “a huge downward adjustment” to maize inventories in China.
The FAO forecast for planet cereal trade in 2020/21 was hiked by 10.6 million tonnes to 465.2 million tonnes — a projected 5.7% rise on the preceding season’s record significant. Trade in all big cereals was predicted to climb, the company mentioned.
Reporting by Crispian Balmer