By Yusuf Khan
Food prices were stable overall in September as strong supply of wheat and other key foodstuffs helped offset rising sugar prices amid reports of poor harvests in Asia, the Food and Agriculture Organization of the United Nations said Friday.
The UN FAO’s food price index, which tracks global prices for a basket of staple foods, averaged 121.5 points in September, putting prices 24% lower than the March 2022 peak and nearly 11% lower than a year ago. August’s price index stood at 121.4 points. The Rome-based body said much of the decline was due to lower wheat and vegetable-oil prices.
That said, the UN FAO highlighted sky-rocketing prices for sugar, with the price index rising nearly 10% during the month to a 13-year high following reports of poor harvests in India and Thailand. Uneven weather patterns caused by the El Nino weather phenomenon have raised prices for a number of commodities such as cocoa and coffee this year.
Cereal prices overall were up 1% from August, led by a 7% rise in corn prices. The FAO said this was “driven by a strong demand for Brazil’s supplies, slower farmer selling in Argentina and increased barge freight rates due to low water levels on the Mississippi River in the United States of America.” That said, wheat prices fell 1.6% amid strong supply from Russia.
Vegetable-oil prices fell 3.9% in September, led by falls in palm and sunflower oil. The FAO said global exports of edible oils were strong during the month.
Elsewhere, dairy prices fell 2.3% from August, marking the ninth consecutive month of decline. Meat prices were also down by 1%, pressured by pork, poultry and sheep.
Write to Yusuf Khan at [email protected]
Read the full article here
