Thursday, August 6, 2020

World food prices rising

World food prices are rising after taking a hit because of the COVID-19 pandemic.

The Food and Agriculture Organization of the United Nations said its food price index, which measures monthly changes for basket of cereals, oilseeds, dairy products, meat and sugar, averaged 94.2 points in July, up from 93.1 points in June.


The agency's vegetable oil price index climbed 7.6 percent in July to reach a five-month high.


The dairy price index was up by 3.5 percent and is now above the pre-pandemic level, the agency said.


Milk powders rose due to strong import demand by Asian buyers amid concern about export availabilities in Oceania. Butter and cheese were supported by robust import demand but remained below pre-pandemic levels, FAO said.


the FAO's meat index declined by 1.8 percent and was 9.2 percent below the year-earlier level, as global import demand continued to lag availability despite coronavirus-linked disruptions to slaughtering.


The cereal index was almost unchanged, with sharp gains for corn and sorghum linked to Chinese purchases of from the United States but lower prices for rice and steady prices for wheat.