World meals costs rose in Could at their quickest month-to-month charge in additional than a decade, posting a 12th consecutive month-to-month enhance to hit their highest stage since September 2011, the United Nations meals company stated on Thursday.
FAO additionally issued its first forecast for world cereal manufacturing in 2021, predicting output of practically 2.821 billion tonnes — a brand new document and 1.9% up on 2020 ranges.
The Meals and Agriculture Group’s meals worth index, which measures month-to-month modifications for a basket of cereals, oilseeds, dairy merchandise, meat and sugar, averaged 127.1 factors final month versus a revised 121.Three in April.
The April determine was beforehand given as 120.9.
On a year-on-year foundation, costs had been up 39.7% in Could.
FAO’s cereal worth index rose 6.0% in Could month-on-month and 36.6% year-on-year. Maize costs led the surge and are actually 89.9% above their year-earlier worth, nevertheless FAO stated they fell again on the finish of the month, lifted by an improved manufacturing outlook in the US.
The vegetable oil worth index jumped 7.8% in Could, lifted primarily by rising palm, soy and rapeseed oil quotations. Palm oil costs had been boosted by gradual manufacturing progress in southeast Asia, whereas prospects of strong international demand, particularly from the biodiesel sector, drove up soyoil costs.
The sugar index posted a 6.8% month-on-month achieve, due largely to reap delays and issues over decreased crop yields in Brazil, the world’s largest sugar exporter, FAO stated.
The meat index rose 2.2% from April, with quotations for all meat sorts buoyed by a sooner tempo of import purchases by east Asian international locations, primarily China.
Dairy costs rose 1.8% on a month-to-month foundation and had been up 28% on a yr earlier. The rise was led by “strong import demand” for skim and entire milk powders, whereas butter costs fell for the primary time in nearly a yr on elevated export provides from New Zealand.
FAO stated its forecast for document world cereal manufacturing this yr was underpinned by a projected 3.7% annual progress in maize output. International wheat manufacturing was seen rising 1.4% year-on-year, whereas rice manufacturing was forecast to develop 1.0%.
World cereal utilization in 2021/22 was seen growing by 1.7% to a brand new peak of two.826 billion tonnes, simply above manufacturing ranges. “Whole cereal meals consumption is forecast to rise in tandem with world inhabitants,” FAO stated.