The Food and Agriculture Organization of the United Nations (FAO) Food Price Index, which measures monthly changes for a basket of cereals, oilseeds, dairy, meat and sugar, stood at 96.1 points last month, up from 94.3 in July.
Cereal crops around the world are still on track to hit an annual record in 2020. The grain price index rose in August by 1.9% compared with the previous month and 7% higher than a year earlier. According to FAO, the largest price increases among staple crops were in sorghum, barley and rice. Corn also rose in value.
The Vegetable Oil Price Index rose 5.9% on a monthly basis, returning to roughly the levels recorded at the beginning of the year during the coronavirus outbreak. The rise in palm oil prices was driven by an expected slowdown in production in the major producing countries, which, combined with strong global import demand, is expected to lead to lower inventory levels.
Average sugar prices rose 6.7% compared to July, reflecting forecasts of production contraction due to unfavorable weather conditions in the European Union and Thailand. Strong import demand in China also boosted prices. In contrast, the dairy index remained virtually unchanged over the month: the drop in prices for cheese and whole milk powder was offset by higher prices for butter and skim milk. The Meat Index was also largely stable, with beef and poultry prices declining, while pork prices rose after falling for four consecutive months amid a sharp rise in imports to China.
Source: sweetinfo.ru.
