… The FAO Meat Price Index reversed an 11-month upward streak and declined four percent during the month because of reduced purchases from China and the Far East as well as large export availabilities of pig and bovine meats…
World food prices rose for fourth consecutive month in January 2020
The Food and Agricultural Organization of the United Nations (FAO) Food Price Index rose again in January 2020, mainly driven by increases in the costs of vegetable oils, sugar and wheat.
By Sam Mehmet, New Food Magazine
Feb 7, 2020
World food prices rose for the fourth consecutive month in January 2020. The Food and Agricultural Organization (FAO) Food Price Index averaged 182.5 points during the month, up 0.7 percent from December 2019 and 11.3 percent higher than the same month a year earlier.
Vegetable oils, sugar, and wheat were the chief drivers of the index, which tracks monthly changes in the international prices of commonly-traded food commodities.
The FAO Vegetable Oil Price Index increased seven percent for the month, hitting a three-year high as prices for palm, soy, sunflower and rapeseed oils all rose. Prices lost strength in the second half of January, however, which is said to reflect uncertainties over trade, the potential impact of the recent coronavirus outbreak and trade tensions between India and Malaysia.
The FAO Sugar Price Index rose 5.5 percent, reportedly propelled by expectations of much lower sugar output in several major producing countries. The FAO indicated that the increase was mitigated by the continuous weakness of the Brazilian currency and the recent decline in crude oil prices, which affects demand for sugarcane to make ethanol.
The FAO Cereal Price Index rose 2.9 percent from December 2019, led by higher wheat prices, followed by maize and rice, largely on firmer demand and a faster pace in purchases by several countries.
The FAO Dairy Price Index rose 0.9 percent, said to be buoyed by strong import demand for butter, cheese and skim milk powder.
The FAO Meat Price Index reversed an 11-month upward streak and declined four percent during the month because of reduced purchases from China and the Far East as well as large export availabilities of pig and bovine meats.
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