FAO food prices climb for 6th consecutive month
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E-mail Xinhua, December 4, 2020
World food prices rose for the sixth month in a row in November, reaching its highest level in nearly six months, as every part of the index saw prices climbs, the United Nations Food and Agriculture Organization (FAO) reported Thursday.
The broad FAO World Food Price Index gained 3.9 percent in October, its biggest one-month gain since July 2012. It is now 6.5 percent above its levels from a year ago, and its highest level since December 2014. The index has climbed every month since June after falling for the first five months of the year.
The biggest mover in the index came from vegetable oils, which surged 14.5 percent to reach their highest levels since March 2014. FAO said steady increases in prices for soy, rapeseed, and sunflower seed oils combined with a spike in prices were behind the dramatic increase.
Every other sub-index saw gains in November, with prices for cereals and grains -- the largest component in the index -- climbing 2.5 percent, pushed by strong demand for wheat exports. Corn prices also rose amid demand from China and reduced supply from the United States and Ukraine. Rice prices were steady in November, FAO said. With the latest gains, prices for cereals and grains are now nearly 20 percent higher than a year ago.
Sugar prices rose 3.3 percent in November, pushed by expectations that full-year sugar production would fall short of that from 2019 due to lower production in the European Union, Russia, and Thailand.
The smallest moves came from dairy and meat prices, both of which saw increases of 0.9 percent in November. The increase in meat prices was the first since January.
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 Jan. 7, 2021.
