Food prices gain again, with oil and sugar reaching multi-year highs: FAO index
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E-mail Xinhua, March 5, 2021
World food prices continued to climb for the ninth consecutive month in February, the United Nations Food and Agriculture Organization (FAO) reported Thursday.
The FAO Food Price Index, which tracks monthly changes in the global prices of food commodities, rose 2.4 percent higher in February from the previous month, and 26.5 percent higher from a year ago. The overall index is at its highest level since July 2014, led by big gains in prices for vegetable oil and sugar.
The cereal price index rose an average 1.2-percent from January. Sorghum prices rose the most in February, climbing 17.4 percent during the month and up 82.1 percent over last year. FAO said the biggest factor behind the rise was strong demand from China.
Corn prices rose just 0.9 percent in February but were still up 45.5 percent from the previous year. Wheat prices were stable in February, FAO said.
The dairy price index climbed 1.7 percent for the month, pushed by limited supply from Europe and higher imports from China.
The meat price index saw the smallest gain for the month, rising 0.6 percent, remaining 4.0 percent below its level from a year earlier.
Vegetable oil and sugar were the big movers in the index.
FAO said vegetable oil price index gained 6.2 percent for the month fueled by speculation over falling supplies. The most pressure came from rapeseed and sunflower seed oils, pushed by supply worries from Europe and South America. With the latest gains, prices reached their highest point since April 2012.
Sugar, meanwhile, gained 6.4 percent to its highest levels since April 2017. Greater demand from Asian countries combined with continued supply worries -- especially from Brazil, which is using more of its sugar crop to produce ethanol. But the gains were tempered by expected increases in production from Thailand and India, FAO said.
The monthly FAO Food Price Index is based on worldwide prices for 23 food commodity categories covering prices for 73 different products compared to a baseline year. The next index is scheduled for release on April 8, 2021.
