World food price up for first time since May

World food price up for first time since May

Monitoring Desk

ANKARA: Global food prices rose in October marking the first significant month-on-month rise since May, the UN Food and Agriculture Organization (FAO) announced Thursday.

The FAO Food Price Index averaged at 172.7 points last month, up 1.7% or 3 points from September, as surges in the prices of sugar, cereals and, to a lesser extent, meat and vegetable oils, more than offset a small decline in the value of the dairy sub-index.

The index is a trade-weighted index that tracks international market prices of five major food commodity groups.

The sugar price index soared 5.8% or 9.8 points on a monthly basis, averaging 178.3 points in October.

“The sharp rebound in international sugar prices in October was mainly underpinned by expectation of much tighter supply prospects in 2019/20,” it said.

Last month, the cereal price index advanced 4.2% from a month earlier largely on robust trade activities and lower crop prospects in several major producing countries. “The FAO Meat Price Index rose 0.9%, driven by higher import demand for bovine and ovine meats, especially from China,” it said.

The vegetable oil prices also increased 0.5% to 136.4 points in October 2019, hitting the highest level since September 2018.

The slight month-on-month rise mainly reflects higher palm oil price quotations, which more than offset lower values for sunflower and rapeseed oils.

The FAO Dairy Price Index slipped for the second consecutive month, falling 0.7% to 192 points, with notably lower price quotations for cheese. (AA)

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