In September, world food prices rose for the most in ten years

World food prices also rose in September, for the second month in a row, reaching a 10-year high. Compared to the same month last year, they were about a third higher. The engine of their growth was mainly the rise in prices of cereals and vegetable oils. Data from the Food and Agriculture Organization (FAO) showed this on Thursday. At the same time, the Rome-based organization slightly raised its forecast for global cereal production in 2021 to 2,800 trillion tons from 2.788 trillion tons estimated a month ago. According to the latest FAO data, the food price index, which maps monthly changes in the prices of cereals, oilseeds, dairy products, meat and sugar, rose to 130 points in September 2021 from a revised 128.5 points in August. This year's September index value is the highest value since September 2011. At the same time, the FAO clarified the August figure and increased it from the original 127.4 points. In a year-on-year comparison, world food prices rose by as much as 32.8% in September 2021. Agricultural commodity prices rose sharply last year, driven by declining yields and demand supported by the Chinese. The FAO cereal price index increased by 2% in September compared to the previous month. The reason was an increase in wheat prices by almost 4%, while the agency pointed to the tightening of export availability in the face of strong demand. World vegetable oil prices rose 1.7% month-on-month and about 60% year-on-year in September as palm oil prices rose in response to strong import demand and concerns about labor shortages in Malaysia, the FAO said. Global sugar prices rose 0.5% in September due to adverse weather conditions for Brazil's largest exporter. These were partially offset by a slowdown in demand and a favorable outlook for production in India and Thailand. In terms of cereal production, the FAO predicted a record world yield of 2,800 trillion tons this year. He also expects global cereal stocks to decline in the 2021/2022 season, but still at a "comfortable" level.