Sugar prices experienced the most significant rise, climbing by 10.4 percent.
The Food and Agriculture Organization of the United Nations (FAO) reported that its food price index, which tracks international prices for various food products, averaged 124.4 points in September. This represents a 3 percent increase from August and a 2.1 percent increase year-over-year.
The sugar price index saw the most substantial increase, primarily due to concerns about Brazil’s crop prospects and India’s decision to lift restrictions on sugar cane production for ethanol. This could potentially impact India’s sugar exports.
The FAO cereal price index rose by 3 percent, driven by higher export prices for wheat and maize. Wet weather in Canada and the European Union has affected wheat supplies, while low water levels in Brazil’s Madeira River and the United States’ Mississippi River have impacted maize production.
However, the FAO rice price index declined by 0.7 percent due to generally calm market conditions.
The FAO vegetable oil price index increased by 4.6 percent, with palm, soybean, sunflower, and rapeseed oil prices rising. Lower-than-expected production in Southeast Asia and reduced crushings in the United States contributed to the increase in palm and soybean oil prices.
The FAO dairy price index rose by 3.8 percent, with prices for whole milk powder, skimmed milk powder, butter, and cheese all appreciating.
The FAO meat price index increased by 0.4 percent, primarily driven by stronger poultry prices due to increased import demand from Brazil. Beef and pigmeat prices remained stable, while sheepmeat prices declined slightly.
TE/Sf/fss/abj.APA