ROME (Reuters) – World food rates rose for a 3rd month running in August, led by coarse grains, veggie oils and sugar, the United Nations food agency stated on Thursday.
The Food and Agriculture Organization’s food rate index, which determines month-to-month modifications for a basket of cereals, oilseeds, dairy items, meat and sugar, averaged 96.1 points last month versus 94.3 in July.
The Rome-based FAO likewise said in a declaration that worldwide cereal harvests remained on course to strike a yearly record in 2020.
The agency’s cereal cost index increased 1.9%in August from the month before and 7?ove its value a year earlier.
Amongst the significant cereals, sorghum, barley and rice rates rose the most, FAO said. Maize also climbed up highly, pressed up by concerns over U.S. production potential customers following current crop damage in Iowa.
The grease rate index climbed up 5.9%month-on-month, going back to around the levels signed up when the coronavirus crisis hit the world at the start of the year.
Palm oil was buoyed by anticipated output slowdowns in significant producing countries, which, integrated with company international import demand, were expected to result in lower stock levels. [POI/]
Average sugar prices rose 6.7%from July, showing projections of a decrease in production due to unfavourable weather conditions in the European Union and Thailand. Strong import need in China likewise assisted press prices higher. [SOF/L]
By contrast, the dairy index was little changed on the month, with falls in cheese and whole milk powder offset by stronger butter and skim milk quotes.
The meat index was also mostly steady, with bovine and poultry costs in retreat while pig meat rates rose after four consecutive months of declines, as Chinese imports jumped.
FAO revised down its projection for the 2020 cereal season by 25 million tonnes, mostly due to expectations of a lower maize production in the United States.
However, in spite of this decrease, the firm still expected a record harvest this year of nearly 2.765 billion tonnes, up 3%on 2019 levels.
” Record maize harvests are forecast for Argentina and Brazil, while international sorghum production is anticipated to grow by 6%from the previous year. Worldwide rice production in 2020 is also anticipated to reach a new record of 509 million tonnes,” FAO said.
The forecast for world cereal utilisation in 2020/21 hit 2.746 billion tonnes, up 2%on the 2019/20 level. The estimate for world cereal stocks by the close of seasons in 2021 was 895.5 million tonnes, down 33.4 million tonnes because July.
Reporting by Crispian Balmer
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