The Food and Agriculture Organisation (FAO’s) trade-weighted index which tracks prices on global markets of five major food commodity groups, rose by 3.9 per cent over the previous month of September, NaijaAgroNet reports.
According to FAO information portal, the agency cut its forecast for world production of grains, including rice, this year by 4.7m tonnes to 2.53bn tonnes, reflecting in the main “less buoyant expectations” for corn output in Asia and Ukraine thanks to dry weather.
The FAO, NaijaAgroNet gathered, said the forecast reduction reflects “dimmer expectations” about maize crops in India and Ukraine due to recent adverse weather.
Intensifying concerns that El Niño may hamper next year’s palm oil supply in Indonesia, coupled with slow progress in soybean plantings in Brazil, due also to unfavourable weather, spurred a 6.2 increase in the FAO Vegetable Oil Price Index,
Global cereal stocks are expected to stay at a reasonable level since wheat inventories worldwide are continuing to rise, now standing at their highest level seen in 15 years.
The FAO’s sugar price index rose 17.2 per cent from September because of fears of heavy rains in the main sugar-growing regions of Brazil and concerns of drought in India and Thailand.
On the other hand, NaijaAgroNet learnt, the agency said prices of rice remained low although the cereals sub-index increased modestly by 1.7 per cent month-on-month, adding that meat is an extension of overall price stability that has been evident since March of this year.
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