World food costs struck brand-new 10-year high in October -FAO

An employee brings a bag of rice to a shop outside Hanoi November 26,2013 Vietnam sent the most affordable cost to supply 500,000 tonnes of rice to the Philippines, beating Thailand’s deal for grain to improve stocks diminished by Typhoon Haiyan, Manila’s grain procurement firm stated on Tuesday. REUTERS/Kham

PARIS, Nov 4 (Reuters) – World food costs increased for a 3rd straight month in October to reach a fresh 10- year peak, led once again by boosts in cereals and veggie oils, the UN food company stated on Thursday.

The Food and Agriculture Organization’s (FAO) food cost index, which tracks worldwide rates of the most internationally traded food products, balanced 133.2 points last month compared to a modified 129.2 for September.

The September figure was formerly provided as 130.0.

The October reading was the greatest for the index given that July2011 On a year-on-year basis, the index was up 31.3%in October.

Agricultural product rates have actually increased steeply in the previous year, driven by harvest obstacles and strong need. learn more

The FAO’s cereal rate index increased by 3.2%in October from the previous month. That was led by a 5%dive in wheat costs, which climbed up for a 5th successive month to reach their greatest because November 2012, FAO stated.

” Tighter accessibility in worldwide markets due to decreased harvests in significant exporters, specifically Canada, the Russian Federation and the United States of America, continued to put upward pressure on rates,” FAO stated of wheat.

Wheat futures began November at brand-new peaks, with U.S. rates at fresh highs because 2012 and Paris front-month futures at a record high as import need stayed vigorous.

World grease costs leapt 9.6%on the month to set a record high, supported by more strength in palm oil rates as labour lacks in Malaysia continued to hinder production, FAO stated.

In contrast, worldwide sugar costs alleviated 1.8%in October, ending a run of 6 straight month-to-month increases, according to FAO.

Rome-based FAO cut its forecast of international cereal production in 2021, to 2.793 billion tonnes from 2.800 billion approximated a month back, according to its cereal supply and need outlook.

That generally showed lowered wheat output price quotes for Iran, Turkey and the United States, balancing out an increased projection for coarse grain production.

Expected world cereal output would still represent a record, however would track predicted need, resulting in a fall in projection cereal stocks, FAO stated.

Demand was supported by a raised forecast of worldwide cereal trade to a brand-new record, strengthened by increased wheat trade.

Reporting by Gus Trompiz; Editing by Nick Macfie

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